Definitions for

**"BOND YIELD"**A calculation of yield with respect to municipal securities under the Internal Revenue Code for purposes of determining compliance with applicable arbitrage regulations. See: ARBITRAGE; YIELD.

Stated simply, the yield on a bond is the interest you actually earn on your investment. If you buy a new issue, your yield is the same as the interest rate, but if you buy on the secondary market, your yield may be higher or lower. When the yield of a bond goes up, its price has fallen. Conversely, if a bond's yield falls, its market value has risen.

a more complicated calculation, involving annual interest payments plus amortizing the difference between its current market price and par value over the life of the bond

The percentage return that the investor will receive.

The return earned on a bond.