Average annual yield

Average annual yield is the average yearly income on an investment, expressed as a percentage.

You can calculate the average annual yield by adding all the income you received on an investment and dividing that amount by the number of years the money was invested. So if you receive $60 interest on a $1,000 bond each year for ten years, the average annual yield is 6% ($600 ÷ $1,000 = 0.06 or 6%).