 For instance, a bond paying a 10% annual coupon will always pay 10% of its face value to the owner each year, even if there is no change in market conditions.However, the effective yield on the bond may well be different, since the market price of the bond is usually different from the face value.Yield return is calculated from

formula_31

where formula_32 is the security's yield to maturity, and formula_33 is the elapsed time.