Yield
InvestingThe income return on an investment, expressed as a percentage of the investment's cost or current value.
Example
Example: A bond with a $1,000 face value pays $50/year in interest. Its coupon yield is 5%. If you buy the bond at market price of $950 (a discount), your current yield is $50/$950 = 5.26%. If you buy at $1,050 (a premium), your current yield drops to 4.76%. Same bond, same coupon — but your actual yield depends on what you paid.