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 ...
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 ...
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 ...
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 ...
James Chen, CMT is an expert trader, investment adviser, and global market strategist. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...
When investing in debt mutual funds, one of the most important — and often misunderstood — indicators is Yield to Maturity (YTM). For many investors, YTM is just a number on a factsheet. But ...
Bond investors routinely have to make judgment calls about expectations on future conditions in the credit markets, including changes in prevailing interest rates and inflation. Using a break-even ...