Learn the differences between yield to maturity and coupon rate, including how they affect a bond's return and its market ...

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, ...

Discover how interest rates and inflation affect bond prices and yields, and learn strategies to manage risk in bond ...

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 ...

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 ...

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 ...

When investors purchase bonds, they do so primarily to generate income. The expected annual rate of return is called the current yield, and it is a function of the current price and the amount 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 ...

The average yield to maturity of the catastrophe bond market has fallen by a meaningful 25.5% year-on-year, according to data ...

After three years of inflation and rate-driven volatility, bond yields are well off recent peaks. But with the Federal Reserve expected to cut rates as soon as September, investors face a new question ...