A bond yield is the current coumpounded interest rate that an investor can earn by purchasing a certain bond at its current market price. When an investor buys a bond, they are essentially lending ...

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, ...

Explore the key characteristics of bonds, types, bond prices and yields, ratings, risks, and investing strategies. Start ...

Dive into yield equivalence – its definition, types, calculation, and influence on various investments. Learn how to optimize ...

The carrying value of a bond refers to its face value, plus any unamortized premiums or minus any unamortized discounts. We can quickly calculate a bond's carrying value with only a few pieces of ...

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 ...

a bond with a longer maturity typically requires a higher discount rate on the cash flows, as there is increased risk over a longer term for debt. Also, callable bonds have a separate calculation for ...

High-yield bonds mean more risk for more return. Corporate bond funds can be separated into two distinct categories: investment grade and below investment grade. The former generally have a credit ...

Investment-grade bond investors still reeling from the pain of 2022′s double-digit loss and subsequent volatility may be able to take heart even if the Federal Reserve pauses the interest-rate ...