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 ...
Internal rate of return (IRR) and yield to maturity are calculations used by companies to assess investments, but they refer to different things. Here's what each term means, and an example of when it ...
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, ...
A version of this article was published in the November 2015 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here. Flaw of Averages Duration, by itself, is a crude ...
Bond math isn’t always intuitive, but a basic understanding of it lies within most investors’ grasp and can help them stay the course in turbulent markets. From 2021 to 2022, for example, the ...
Bondholders receive regular coupon payments through the bond's term. A bond's par value is its face value. Yield to maturity gives investors an idea of the total returns from buying a bond. Investors ...
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 ...
Tennessee Valley Authority PARRS are exchange-traded like baby bonds with $25 par value under the tickers TVC and TVE. They mature in 2028 and 2029 and are rated the same as U.S. Treasury notes but ...
Above maturities of six months to a year, the equilibrium yield to maturity for government securities consists of two statistically independent components. The first, the so-called "consol yield", is ...