In financial terms, yield represents the earnings an investor can expect to receive on an investment, expressed as an annual percentage of the investment's cost or current market value. Yield is a crucial measure used to evaluate the profitability of investments such as bonds, stocks, or real estate.

For example, the yield on a bond is typically calculated based on the coupon payments and the bond’s current price. If a bond with a face value of $1,000 pays $50 annually in interest, and the bond is currently priced at $950, the current yield would be approximately 5.26% ($50 divided by $950). Investors use yield as an indicator to compare different investment opportunities. Higher yields often imply higher risk, whereas lower yields might suggest lower risk or better credit quality.

Yield can also pertain to operational aspects of a business. For example, in terms of production, yield refers to the output efficiency, such as the amount of product manufactured per input of raw materials. Understanding the yield of investments and operations is fundamental for financial decision-making.