When investors purchase bonds, they do so primarily to generate income. The expected annual rate of return is called the current yield, and it is a function of the current price and the amount of ...

An annual percentage yield, or APY, is the rate of return on money in a bank account. Many, or all, of the products featured on this page are from our advertising partners who compensate us when you ...

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 ...

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 ...

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA ...

Companies pay dividends when they distribute a portion of their earnings to shareholders. Dividends can be paid in cash or additional shares of the company's stock, usually on a quarterly basis. Not ...

APY, or annual percentage yield, is an important figure used in the banking world to explain how much interest you’ll earn on savings account deposits. The higher the APY, the more you earn in a given ...