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EP. 225 PROPERTY YIELDS EXPLAINED AS EASY AS A,B,C
It is a financial ratio that indicates how much a company pays in dividend/interest to investors, each year, relative to the security price. Yield is a measure of cash flow that an investor is getting on the money invested in a security.Nominal Yield = (Annual Interest Earned / Face Value of Bond) For example, if there is a Treasury bond with a face value of $1,000 that matures in one year and pays 5% annual interest, its yield is calculated as $50 / $1,000 = 0.05, or 5%
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