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 ...
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 ...
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, ...
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 ...
Melissa Horton is a financial literacy professional. She has 10+ years of experience in the financial services and planning industry. Vikki Velasquez is a researcher and writer who has managed, ...
Interest expense for discounted bonds includes amortized discount over the bond's term. Bonds issued at a premium reduce recorded interest expense by amortizing the premium. Bonds sold at face value ...
When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in. The content of this article is provided for information ...