What is a 5% yield?
Could you please clarify what exactly is meant by a 5% yield in the context of finance and investments? I'm trying to understand if this refers to the annual rate of return on an investment, or perhaps something else entirely. If it is indeed the annual return, how is this calculated and what are the potential risks associated with investing in assets that promise such a yield? Additionally, are there any specific types of investments that typically offer a 5% yield, and are there any factors I should consider before making such an investment?