Yield: Also known as return; the dividends or interest paid on a security calculated as a percent of the price paid. In the case of a bond, this figure is known as current return.

Yield to maturity: The yield on a bond, taking into account the interest rate, purchase price in relation to par value and number of years left to maturity. For example, if an investor purchases a $1,000 bond for $800, the $200 profit ($1,000 - $800) the owner will receive at maturity will be added to the interest earned when calculating yield to maturity.