What is Yield?
Stocks, funds & commoditiesThe yearly income an investment pays, as a percentage of its price. For bonds, when prices fall, yields rise.
Think of it like: The interest rate you actually earn at today's price.
Real example: A bond priced at 100 that pays 6 a year yields 6%. If its price falls to 80, the same 6 is a 7.5% yield.
Lesson: Bonds and government debt Practise it now: Who Am I? Practise it now: Safe Haven Sprint