Newspaper clip of Treasury yields. Yield Concept.

Yield

Yield is the income-only return on an investment over a set period of time. Usually stated as a percentage of the original investment, the calculation for yield is as follows:

Yield = Net Realized Return / Principal Amount

This cash flow measure applies to fixed-income securities, common stocks, preferred stocks, and convertible stocks and bonds. It also pertains to annuities and real estate investments. 


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