In general, yield is calculated as follows:
The term yield may refer to slightly different aspects of a return for variable types of investments. For example, a yield on bonds, such as the coupon yield is the annual interest paid on the principal amount of the bond. Current yield is the coupon yield on a bond at a specific point in the time before the bond maturity. A yield to maturity of a bond is the internal rate of return on a bond's cash flow, including the cost of the bonds, period payments from the bonds, if any, and the return of the principal at redemption.
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In equities, yields on preferred shares are similar to bond yields. For example, the dividend yield is the total payments in a year from the preferred shares divided by the principal value of the preferred shares. The current yield refers to the annual payments divided by the current market price.