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, ...

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Yarilet Perez is an experienced multimedia journalist and ...

Yield to maturity The biggest difference between IRR and yield to maturity is that the latter is talking about investments that have already been made. Yield to maturity, or YTM, is used to calculate ...

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 ...

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 ...

One key aspect of any bond investment is its current yield. When a bond is brand-new, figuring out the bond yield is relatively simple, because in most cases, bonds are issued at prices that are close ...

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 ...

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 ...

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 ...