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 ...

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 ...

There is a lot more to investing in bonds than simply looking at the stated, or coupon, interest rate. Many bonds are callable, which means that the issuing company has a right to buy the bonds back ...

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, ...

Interest rates have skyrocketed YTD, leading to wild swings in bond fund yields. Yields can be measured in several different ways too, which further complicates matters. Thought an article looking at ...

Yield to maturity The biggest difference between IRR and yield to maturity is that the latter is talking about investments that have already been made. Yield to maturity, or YTM, is used to calculate ...

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 ...

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 ...

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 ...