Bond yield is the return an investor realizes on a bond, and it is the return on the capital invested by an investor. The yield on a bond can be calculated by dividing a bonds face value by the amount of interest it pays. There are several ways to calculate yield, including the coupon yield, current yield, and yield to maturity. The yield to maturity (YTM) is the overall interest rate earned by an investor who buys a bond at the market price and holds it until maturity. The relationship between bond prices and yields is inverse, meaning that as bond prices go up, yields go down, and vice versa. Bond yields are affected by the price the buyer pays for the bond, and if the prevailing yield environment declines, prices on those bonds generally rise, and the opposite is true in a rising yield environment.