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, ...
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 ...
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 ...