Yield refers to the income generated by an investment, expressed as a percentage of the investment’s cost or market value. The yield on an investment can be calculated in several ways, including the coupon yield (for bonds), the dividend yield (for stocks), or the yield to maturity (for bonds). Yield is a key factor in investment decision-making, as it can provide insight into the potential income and overall return of an investment. Higher yielding investments are often considered to carry a higher level of risk, as the yield is often used to compensate for the higher likelihood of default or price fluctuations.