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.
Annual Coupon Rate â The annual coupon rate is the posted interest rate on the bond. In reverse, this is the amount the bond pays per year divided by the par value. Market Rate or Discount Rate â The market rate is the yield that could otherwise be received by buying another investment. Generally, this will be different than the actual coupon rate on a bond â see our bond yield to maturity calculator for more (this is essentially the inverse of this operation).