What It Means
Yield is the income an investment generates, usually expressed as a percentage of its price. For a stock, that's typically dividend yield; for a bond, it's the effective interest rate you earn based on what you paid for it.
How It Works
Dividend yield is calculated as annual dividend per share divided by the current share price — a stock paying ₹10 in annual dividends at a ₹500 share price has a 2% dividend yield. Bond yield works differently: because bonds trade above or below their face value in the secondary market, a bond's yield moves inversely to its price — pay less than face value for a bond and its yield rises; pay more and it falls, since the fixed coupon payment now represents a smaller or larger percentage return relative to what you actually paid.