Which of the following statements is/are correct with reference to the Bond yield?

A. It is the return an investor gets on that bond or on a particular government security.

B. A rise in bond yields means interest rates in the monetary system have fallen, and the returns for investors have declined.

C. Both A & B

D. None of these

Explanation:

Rising yields on government securities or bonds in the United States and India have triggered concern over the negative impact on other asset classes, especially stock markets, and even gold. Bond yield is the return an investor gets on that bond or on a particular government security. In short, a rise in bond yields means interest rates in the monetary system have fallen, and the returns for investors (those who invested in bonds and govt securities) have declined.