What is yield interest rate?
Yield interest rate is a measure of return for an investment, typically expressed as a percentage. It represents the amount of money you could expect to receive if you invest in a certain security or asset, such as a stock, bond, or mutual fund.
How is yield interest rate calculated?
The yield on a bond is the amount of interest that the bond pays expressed as a percentage of the bond's face value. The yield is calculated by dividing the annual interest payment by the bond's face value. For example, if a bond has a face value of INR 1,000 and it pays annual interest of INR 50, the yield on the bond would be 5%.