The yield basis is a way of expressing a fixed-income security’s price as a percentage yield rather than a dollar value. This makes it simple to compare bonds with different properties. Divide the yearly coupon amount paid by the bond purchase price to get the yield basis. The yield quotation shows the bond trader if the bond is trading at a discount or premium to other bonds at the time.
When you buy a bond on a net yield basis, you’re paying a price that includes the broker’s profit or markup for completing the transaction.