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Finance Dictionary

Yield

The income returned on an investment, expressed as a percentage of the investment's cost or current value. Applicable to bonds, dividend stocks, FDs, and REITs.

Formula

Current Yield = Annual Income / Current Price × 100

Example

A bond purchased at ₹1,000 paying ₹70 annual interest has a yield of 7%. If price rises to ₹1,100, yield drops to ~6.36%.