What happens to yield during inflation?

If money is loosing buying power due to inflation then you can essentially subtract the inflation rate from the interest rate to get an actual inflation adjusted yield that will be lower than the unadjusted yield.

Inflation is a situation in which too much money chases too little goods which means that the price levels increase because the demand for goods is higher then their supply.Thus when there is inflation the level of yield/output/supply will be lower compared to demand.

those that offered the bonds,, and held them to adulthood, have been given the promised money and the return replaced into rather good. i think< if my memory remains maximum miraculous that a $one hundred.00 bond cost $75.00, a $50.00 replaced into $37.50, so incredibly not a bad deal.