How is yield commonly expressed in financial transactions?

Yield is commonly expressed as a percentage because it provides a standardized way to measure the return on investment relative to the amount invested. This percentage allows investors to easily compare the effectiveness of different investments, regardless of their size or type. For instance, a bond yielding 5% will return $50 annually on a $1,000 investment, making it clear and understandable to evaluate that return against other investment opportunities.

Expressing yield as a dollar amount, flat fee, or total revenue does not provide the same level of comparative clarity. A dollar amount can fluctuate based on the investment size, making it less useful for comparison. A flat fee might not accurately reflect the proportional return of an investment relative to its cost. Total revenue tends to encompass all income generated, which can include other factors beyond yield, such as operational costs or expenses. Hence, yield expressed as a percentage best conveys the rate of return while facilitating effective comparisons in financial transactions.