Yield

The return on an investment, expressed as a percentage of cost. Straight yield or current yield is found by dividing the market price into the dividend rate in dollars (for stocks) or interest rate (for bonds). It ignores the factor of maturity or possible call at a price higher or lower than the market. Amortized yield or yield to maturity (of a bond) takes into account the eventual gain or loss of principal value to be realized through repayment at maturity. Where a bond is callable before maturity, the amortized yield might be lower if it is assumed that call takes place. The true amortized yield should be the lowest shown on any assumption as to call.