Home > Yield (economics)
The yield of a financial instrument, usually a debt or other fixed income instrument, is the amount the holder is paid each year for leaving his or her money invested in that instrument. Unlike a corporate dividend, a yield is fairly certain, unless there is a bankruptcy.
While yields vary with inflation, they tend to fit in a fixed order: the least risky instruments, such as Treasury bonds, yield the least, then safe and "guaranteed" instruments like long-term deposit s, then overnight deposit s, and so on to the various municipal bond and corporate bond s. Extremely risky instruments with high yield are usually called junk bonds.
See also:
monetary reform
ecological yield
