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, ...
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 ...
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 ...
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, ...
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 simplest ways to evaluate a potential bond investment is via the bond’s current yield. Bond current yield is a simple measure of what the bond will earn if you buy and hold it for a year ...