Though issuing equity is a popular way for organizations to raise money, some organizations consider issuing debt securities, too. They are like bonds through which the government and some ...

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 ...

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, ...

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 ...

The yield to maturity (YTM) is total return on bonds if held till maturity date. YTM is different from the yield on the bonds. For instance, suppose a company issues bonds with a 10 percent annual ...

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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, ...

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 ...

Yield calculation starts by dividing the coupon rate by two and the result by current bond price. Using a simple yield method can overlook gains or losses due upon bond maturity. Including potential ...

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 ...

Money market yield measures the annualized return on short-term, low-risk investments like Treasury bills and commercial paper. It helps investors compare the earnings potential of different money ...

Use break-even calculations to compare short vs. long-term bonds' potential against future rate rises. The break-even interest rate helps decide if short maturity bonds offset lower yields with future ...