One of the most popular measures of bond yield is yield to maturity (YTM). Also called book yield or redemption yield, it’s the estimated rate of return an investor can expect from a bond when held ...
There is a lot more to investing in bonds than simply looking at the stated, or coupon, interest rate. Many bonds are callable, which means that the issuing company has a right to buy the bonds back ...
Bonds are investment vehicles that make regular coupon payments until maturity, at which time the bond's face value is paid. If a bond is callable, the issuer of the bond may terminate the bond's ...
Rising interest rates have increased the long-term expected dividends and returns of most bonds and bond funds. There is a simple way to estimate the long-term expected returns of these securities, ...
T-bills are sold at a discount to their face value. They offer returns at maturity without periodic interest payments. With T-bill yields higher in recent years, they can be an excellent, low-risk way ...
If a bond is "callable," it means that the issuer has the right to buy the bond back at a predetermined date before its full maturity date. The call could happen at the bond's face value, or the ...
Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Yarilet Perez is an experienced multimedia journalist and ...
One of the dangers of investing in a long-term bond is the potential for it to lose value before it comes due. When you buy a bond, you're essentially lending an entity (such as a company or ...