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 ...

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, ...

The formula for calculating a dividend’s yield can be broken down into two key steps. A dividend is a payment from a company or other entity to shareholders tied to ownership of a stock or another ...

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 ...

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, ...

Maturity level, or value, is the worth of an investment security, including a bond or certificate of deposit, when the security reaches its payout date. Investing money in a bond or certificate of ...

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 ...

Farran Powell is the managing editor of investing at Forbes Advisor. She was previously the assistant managing editor of investing at U.S. News & World Report. Her work has appeared in numerous ...

Curious what is a bond fund? Find out how these funds generate income, the risks you should know and how investors use them ...

CD investing involves depositing money into certificates of deposit that earn fixed interest rates for set periods—typically ...