Bond yields refer to the interest rate that a bond pays its investors. In other words, it is the return on investment for buying a bond. When an investor purchases a bond, they are essentially lending money to the issuer (usually a government or corporation) in exchange for regular interest payments and the eventual repayment of the principal amount when the bond matures. The yield is calculated based on the current market price of the bond and its face value, taking into account factors such as the length of time until it matures, its credit quality, and prevailing interest rates in the economy. Bond yields can fluctuate daily, depending on a variety of economic and financial conditions, and are an important indicator of investor sentiment towards fixed-income securities.