The yield of a particular security represents the current market interest rate of the security. It is calculated by dividing the annual coupon by the current market price and is expressed as a percentage. The yield and price of a fixed interest are inversely related so that when market interest rates rise, bond prices generally fall and vice versa.

It is very imprtant to consider the yield of a security based on the current market price (rather than the price you bought at) when evaluating and comparing to other fixed income securities.