What is meant by exit yield on a bond?

Exit yield on a bond refers to the yield an investor expects to receive if they sell the bond before maturity. It reflects the bond's market value at the time of sale, taking into account current interest rates and the bond's credit quality. Essentially, it helps investors assess the potential return on their investment based on prevailing market conditions rather than the bond's original coupon rate. A higher exit yield typically indicates a lower market price for the bond, while a lower exit yield suggests a higher market price.