yield rate

Yield rate is a financial metric that indicates the income generated by an investment, expressed as a percentage of its cost or current value. It helps investors assess how well an investment is performing relative to its price. For example, if you buy a bond for $1,000 and it pays $50 a year, the yield rate would be 5% ($50 income divided by $1,000 investment). This measure helps compare the profitability of different investments and is useful in making informed financial decisions. Higher yield rates suggest better returns, but may also carry higher risk.