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 ...

When considering bonds, issuers and investors alike need to consider the coupon rate: the interest paid by the bond. Most bonds pay out coupons on a semi-annual basis, relative to the par (face) value ...

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 ...

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 ...

The bond coupon rate determines the fixed annual income investors earn from bonds, offering predictable returns and stability ...

The bonds that companies and governments sell to borrow money pay a fixed amount of interest each year called the coupon rate. Each bond also has a face (or par) value. Bonds have a specified lifetime ...

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 ...

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 ...

Bond prices move up and down constantly, and it's common for bond investors to face situations where they have to pay more than the face value of a high-interest bond in order to persuade the current ...

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, ...

At maturity, a bond typically pays its face value plus final coupon-based interest. Before maturity, bond sale proceeds include both partial interest and current market price. Keep track of bond price ...

The bond market can be hard for investors to understand, and one area that can get tricky is calculating how much in proceeds you'll receive when you sell a bond. Although quoted bond prices give you ...