A risk premium is the return over and above the risk-free rate (generally thought of as the return on U.S. Treasuries) that investors demand to compensate them for the risk of owning an asset. Because ...

Expertise from Forbes Councils members, operated under license. Opinions expressed are those of the author. What if I say that starting a business is unnatural? The venture is always risky, and we’re ...

All investments have some level of risk, and bonds are no exception. Some bonds have virtually no chance of default, such as U.S. Treasuries, while others have a significant default risk. Companies ...

Investing is about putting money at risk in order to earn a return. In theory, the more risk an investor is willing to accept, the more returns he or she should expect to earn to compensate for the ...

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Khadija Khartit is a strategy, investment, and funding expert ...

How do you know if an investment is worthwhile? How can you be sure your investment decisions will amount to the ROI you need to retire? These are important questions every investor needs to ask ...

The carrying value of a bond refers to its face value, plus any unamortized premiums or minus any unamortized discounts. We can quickly calculate a bond's carrying value with only a few pieces of ...

The liquidation value of a company represents the total value of its assets if the company were to go out of business and liquidate its assets to pay off debts. For investors, understanding a ...

If you take out a loan for your business, you will pay the cost of borrowing in the form of an interest rate. Alternatively, if your business has a savings account, you will be paid an interest rate ...

Par value is an arbitrary low value assigned to shares to meet legal requirements. To compute par value of issued shares, multiply the number per share by total shares. Low par value reduces financial ...