The return on an investment or the amount of profit, stated as a percentage of the amount invested; the rate of return. In real estate, yield refers to the effective annual amount of income that is being accrued on an investment. The yield on income property is the ratio of the annual net income from the property to the cost or market value of the property. The yield, or profit, to a lender is the spread or differential between the cost of acquiring the funds lent and the interest rate charged.
yield to maturity
The "internal rate of return" on an investment. Considers all inflows and outflows of investment returns and their timing. Example: An income-producing property requires a $10,000 investment. It promises a $1,000 annual return for 5 years, then resale proceeds of $15,000. The "yield to maturity" is 17.1%. See "internal rate of return" for formulas.