Peeing in a trash can instead of walking 50 feet to the bathroom is not funny. Raiding you neighborâs cooler is not funny. Building an 8 foot tall bonfire is not funny. Asking if you can wear the park rangerâs hat is not funny. Guess whose job it is to tell them that they are not funny: the park ranger.
The main difference between yields and interest rates is that each term refers to different financial instruments. Yield commonly refers to the dividend, interest or return the investor receives from a security like a stock or bond, and is usually reported as an annual figure.
A bond's coupon rate is the actual amount of interest income earned on the bond each year based on its face value. A bond's yield to maturity is the estimated rate of return based on the assumption it is held until maturity date and not called. Yield to maturity includes the coupon rate within its calculation. Investors are more likely to make investing decisions based on an instrument's yield to maturity than its coupon rate.