Explain the concept of bond yield.

Economics Bonds Questions



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Explain the concept of bond yield.

Bond yield refers to the return an investor receives from holding a bond. It is the annual interest or coupon payment received from the bond divided by its current market price. Bond yield is expressed as a percentage and represents the income generated by the bond as a proportion of its price. It is an important measure for investors to assess the profitability and attractiveness of a bond investment.