In investing, people often seek a high yield. The equation of a yield generally means the annualised payout divided by the price of the asset. The higher the yield the better. True or false? Answer: It depends. More accurately, it depends on the hat you are wearing. Are you a bond investor or an equity investor If you are a bond investor or a lender and you can safely ascertain that no defaults or losses will be incurred, the higher the yield, the better. This is because you are on a fixed payout and a final bullet payment of principal at the end. If you are an equity investor. Then it truly depends. For two key reasons. Equity investors earn by two methods, capital gain and dividend payouts. A high yield gives a high payout return but makes it difficult for managers to hunt for new assets to grow the...