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 ...

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 ...

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, ...

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 ...

Interest rates have skyrocketed YTD, leading to wild swings in bond fund yields. Yields can be measured in several different ways too, which further complicates matters. Thought an article looking at ...

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. Yarilet Perez is an experienced multimedia journalist and ...

Question: I'm buying a $1,000 bond that pays 6 percent interest and matures in eight years, but I'm getting it for $970. How much is my actual interest yield each year? Answer: You're referring to the ...

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 ...