Bond Yield is a key financial metric used to measure the return or income generated by holding a bond. It is typically represented as the ratio of the bond's coupon payments to its market price, yielding a percentage. There are various types of bond yields, such as current yield, which calculates the annual coupon payments divided by the bond's current price, and yield to maturity, which considers the total return expected over the bond’s lifetime, taking into account coupon payments and the difference between the purchase price and the par value at maturity. Calculating bond yields helps investors compare bonds and make informed investment decisions. For instance, a bond with a 5% annual yield means that for every $1,000 invested, the investor earns $50 annually in coupon payments. Bond Yield is crucial in fixed-income investing since it reflects the potential income and indicates the bond's valuation compared to others in the market.