YTM measures the total annual return on a bond if held till its maturity date. Calculation of YTM includes present value, market price, maturity date, and compounding periods. Limitations of YTM ...

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, ...

Nick Lioudis is a writer, multimedia professional, consultant, and content manager for Bread. He has also spent 10+ years as a journalist. Yarilet Perez is an experienced multimedia journalist and ...

Interest expense for discounted bonds includes amortized discount over the bond's term. Bonds issued at a premium reduce recorded interest expense by amortizing the premium. Bonds sold at face value ...

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 ...