“Yield” is a broader term that refers to the earnings generated by an investment over a set period, typically expressed as a percentage. This might include interest income, dividends, or capital gains. While yield can be influenced by interest — including compound interest — it does not specifically refer to the compounding mechanism itself. For instance, a bond yield might tell you what return to expect annually based on its price and payouts, but it doesn’t explain how the interest is calculated or whether it compounds. Using the term “yield” in place of “compound interest” would be inaccurate, as it describes output (the return) rather than the method by which the return is generated. Clarifying this helps in comparing investment options, especially when trying to distinguish between the mechanics of earnings and their results.