When considering bonds, issuers and investors alike need to consider the coupon rate: the interest paid by the bond. Most bonds pay out coupons on a semi-annual basis, relative to the par (face) value ...

Interest rates and bond prices exhibit an inverse relationship: when interest rates increase, bond prices decrease, and when rates decrease, bond prices increase. This occurs because newly issued ...

With interest rates moving higher over the last 18 months, many investors are concerned that they are not earning anywhere near market rate on their bonds. They’re holding bonds at 3.25 percent while ...

Explore the key characteristics of bonds, types, bond prices and yields, ratings, risks, and investing strategies. Start investing wisely today.

As a bond provides a contractual right to a series of future payments received at specified points of time, the price for a bond is simply the present discounted value of the future cash flows. The ...

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 ...

A bond's coupon rate is fixed, specifying the annual payment relative to the bond's face value. Calculating bond coupon rate is straightforward: divide annual payments by the bond's face value. Yield ...