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, ...
Bonds are a popular security for fixed-income investors and people seeking stability for their portfolios. Understanding how bonds, which are essentially corporate or government IOUs, provide income ...
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 ...
Understanding the inverse relationship between bond prices and interest rates can be a little confusing for new investors. However, taking an in-depth look at the various characteristics of 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 ...
Dive into yield equivalence – its definition, types, calculation, and influence on various investments. Learn how to optimize ...
When teaching financial accounting, faculty often discuss bonds payable and how to calculate the issue price of a bond. The next time you cover this topic, consider teaching students how to calculate ...
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 ...