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  • Abhineet Kapil thinks this is interesting:

Since fixed income markets are concerned with interest rates, the varying price changes for equivalent interest rate changes make it difficult to compare a 2-year bond to a 10-year bond. The yield, or the internal rate of return of a bond, transforms the price into a measure that places bonds of different maturities on a level playing field.


Cover of Interest Rate Markets: A Practical Approach to Fixed Income


yield - an important parameter to equate varying bonds.