Indicated yield, also known as the coupon yield or nominal yield, is a term commonly used in the context of fixed-income securities such as bonds. It refers to the annual interest payment a bondholder receives relative to the bond's face value or par value. The indicated yield is expressed as a percentage and represents the fixed interest rate specified by the bond at the time of issuance.

For example, if a bond has a face value of $1,000 and an indicated yield of 5%, the bondholder would receive $50 in annual interest payments (5% of $1,000). These interest payments are typically made semi-annually or annually until the bond matures.

It's important to note that the indicated yield is calculated based on the bond's face value and does not take into account changes in the bond's market price. If the bond's market price deviates from its face value, the effective yield, also known as the current yield or yield to maturity, may differ from the indicated yield. The effective yield considers the bond's current market price and reflects the actual return an investor would receive if they hold the bond until maturity, taking into account any capital gains or losses.