Yield

The yield simply refers to the level of return on some sort of financial product (typically a loan or an investment of some sort).

For instance if you buy a property for a £100,000 and can make £10,000 in rental income each year, then that is said to be a yield of 10% - any yield on property of this level is of course highly attractive as the rents have paid for the property in the space of just ten years.

There are various ways of calculating a yield for different products and in circumstances, ranging from the simple to the more convoluted.

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