Yield is the amount of annual interest,expressed as a percentage of the par value and determines how much investors will receive on their investment.

Question

Quizplus · Accepted Answer

Yield is indeed calculated as the annual interest (usually based on the coupon rate) divided by the par value of the bond, expressed as a percentage. This yield percentage helps investors evaluate the return they can expect to receive on their investment.

Yield Is the Amount of Annual Interest,expressed as a Percentage