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 ...

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, ...

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 ...

Yield equivalence is a concept in financial analysis that facilitates the comparison of yields between different types of debt securities, even if they have varying payment frequencies or structures.

Money market yield measures the annualized return on short-term, low-risk investments like Treasury bills and commercial paper. It helps investors compare the earnings potential of different money ...

Perpetual bonds have no maturity date, allowing them to pay interest indefinitely, making them appealing for long-term income. They come in different types, such as government and corporate bonds, ...

When buying a bond, yield is one of the most important factors to consider. But calculating yield can vary depending on what the investor does with their coupon payments. Will you pocket them as a ...

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 ...

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 ...