money accruing or earned upon an investment per year.
The income return upon stock is found by dividing the amount of annual dividends by the purchase price; thus, if U.S. Steel common is purchased at 30 and pays $1.60 in annual dividends, the income return is 5.33%. The income return on bonds may mean two things - the annual return upon purchase price or the yield if held to maturity. The former is ascertained in the same way as the income return from stock, i.e., by dividing the annual amount of interest by the purchase price. For the return if held to maturity
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