bond

The yield to maturity (YTM) calculation provides a way to compare bonds of different coupon rates and prices. YTM also gives an accurate representation of the actual return an investor will receive and hold the bond until maturity and the…

The United States Treasury issued Series E bonds from May 1941 through June 1980. Series EE bonds replaced Series E savings bonds. Series E Savings Bonds have face values of $25.00, $50.00, $75.00, $100, $200, $500, $1,000, $5,000 and…

Bonds pay investors a fixed interest rate every year until they mature or come due. When initially issued, bonds are sold in denominations of $1,000 or what is known as "par value." Bonds Traded on Secondary Market…

A bond is a kind of debt security, in which the party that sells the bond agrees to pay back the bond purchaser the initial investment, plus interest, at a later date. The bond's rate is the amount of interest the bond issuer agrees to pay.…

There are two major types of investments: stocks and bonds. Stocks represent an equity stake in a company, and bonds represent a debt and claim on the company's assets. The current market value of a bond is determined by the rate of…

Securitization in a process in which income streams from various assets are pooled together, then sold off in slices to investors. Collateralized mortgage obligations (CMOs) are securitized products designed to generate returns above…

Most corporate bonds are issued with a fixed interest rate, payable to investors on an annual basis until maturity. Yield is a term that expresses the true rate of return for investors who purchase these bonds at variable prices. …

There are two ways to invest in a company: through stocks or bonds. Stocks represent equity or ownership and bonds represent a debt that must be repaid. Most companies issue bonds as a form of capital raising, especially because interest…

U.S. Treasury bonds are referred to as "risk-free" investments for their unique safety. The U.S. government finances itself with debt sold to investors as Treasurys. Federal government officials maintain the power to tax and "create" money…

There are two main ways to invest in a company. You can invest via bonds or stocks. Bonds represent debt for the company, and the company pays the bondholder interest for the loan. The rate of interest depends on the creditworthiness of the…