Yield refers to the income generated by an investment, typically expressed as a percentage of the investment's cost or current market value. It is a key measure of the return on investment (ROI) and is used by investors to assess the profitability and income potential of different assets, such as bonds, stocks, and real estate. Yield can be calculated in various ways, depending on the type of investment and the specific income generated. For example, the yield on a bond is typically calculated by dividing the annual interest payment by the bond's current market price, while the dividend yield on a stock is calculated by dividing the annual dividend payment by the stock's current market price.

There are several types of yield, each providing different insights into an investment's performance:

• Dividend Yield: This measures the income generated by a stock in the form of dividends, expressed as a percentage of the stock's current market price. Dividend yield is an important metric for income-focused investors, as it indicates the cash flow they can expect from holding the stock.

• Bond Yield: This measures the income generated by a bond in the form of interest payments, expressed as a percentage of the bond's current market price or its face value. Bond yield is a key consideration for fixed-income investors, as it reflects the return they can expect from holding the bond until maturity