Yield
The income an investment pays, shown as a percentage of its price.
In plain English
The income an investment pays, shown as a percentage of its price.
Yield is what an investment pays you, as a percentage. For a bond, it is the return you get from its interest payments, given what you paid for it. For a stock, the dividend yield is the yearly dividend divided by the share price.
Bond yields and prices move in opposite directions, like a see-saw: when prices fall, yields rise, and vice versa. For forex, yields are central, because money tends to flow toward currencies offering higher returns, all else equal.
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