Debt Yield 

Definition:

Debt yield is a financial ratio that measures the income generated by a debt instrument as a percentage of its price. It is calculated by dividing the annual interest payments by the price of the debt instrument.

Formula: 

Debt Yield = Annual Interest Payments / Price of Debt Instrument

Example: 

For example, if a debt instrument has annual interest payments of $100 and a price of $1,000, then its debt yield would be 10%.