The yield on a Note indicates the expected annual return on that Note as adjusted by the bid price and the servicing fee. For example, if a Note with a yield of 10% and an estimated Note balance at settlement of $50 is offered for sale by a Note seller for $48, the yield will be higher than 10% because the buyer will be paying less for the Note than it is worth, therefore dedicating a higher percentage of future payments to interest. If the sale price is set above $50, the yield will drop below 10% because the Note buyer will be paying more for the Note than it is currently worth, therefore lowering the value of future interest payments. The yield is a calculation of the Note holder’s expected annualized return, assuming all future payments are made on schedule and there are no prepayments.