We'll start with breaking things down to understand what exactly Bond Yield is;.... in the best possible way!
So, "Bond Yield" have 2 terms.... "Bond" & "Yield".
Let's understand each owe by one.
So starting with "Bond(s)"....
What Are Bonds? Basic Definition!
A Bond is a fixed income instrument that represents a loan taken by a Borrower from an Investor. So, basically a Bond is just a piece of paper which ensures that an investment was made by an Investor & therefore.... the Investor had paid a certain amount to the Business Owner.
You May Also Read:
What Are Bonds?
Are BONDS Safer Than Stocks?
*—We Have Some Articles, which.... solely talks 'bout the Concept Of "Bonds" & Explain It In Simple Terms!
These Blogs/Articles Can Really Help Y'all To Understand Bonds Much Better! *
What Is A Yield? (Meaning Of Yield!)
Yield is nothing but the Return OR the Interest Rate of a Bond.
Now, as of giving money to the Business.... the investor is for sure Investing to earn some sort of profit from that Investment.... & here that Profit is the Interest paid by the Business Owner to the Investor....While Returning The Investor's Money.
So, finally coming to the Blog's Major Topic....
What Are Bond Yields?
A Bond Yield is nothing but the Return / Interest Rate which the Bond is gonna pay back to there Investors if they Invest in that particular Bond.
In other words, Bond Yield is the profit % the Investor is gonna make if they really Buy/Invest in that Bond!
Remember, Different BONDS Have Different Bond Yields!
You may do your research & find out which one is profitable yet less riskier!
Note— I'm not recommending any particular Bond, to invest in; in any part of this Blog/Article!
It is highly recommended to always check the basic fundamentals of the Businesses before investing in them.... to avoid frauds & scandals!
Bonds may be a Safer Investments.... But there is always a chance of a loss!
So take your Safety Measurements before making any decision & Finally, make such an Investment which is Good For you & meet your Requirements & all!
Anyways,
Thanks For Reading!
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