A bond's price is a function of the quality (financial health) of the issuer; current interest rates; and the bond's term to maturity. A bond's yield is defined as its coupon divided by its current price If the price of a bond rises, the yield falls. If the price of a bond falls, the yield rises. A bond's yield to maturity is the total return anticipated on a bond if the bond is held until it maturity, and reflects the interest earned and capital gains or losses (the change in price from the bond's issue, usually $1,000).