The annual percentage rate of return earned on a bond calculated by dividing the coupon interest by its purchase price.
A line tracing relative yields on a type of bond over a spectrum of maturities ranging from three months to 30 years.
The difference in yield between two bonds or bond indexes.
The yield on a bond calculated by dividing the value all interest payments that will be paid until the call date, plus interest on interest, by the principal amount received on the call date at the call price, taking into consideration whatever gain or loss is realized from the bond at the call date. Example: You pay $900 for a five year bond with a face value of $1000. The bond pays an annual coupon of ten percent. This bond is called at year three for $1,100. The yield to call of this bond is 18.4 percent. This reflects the three years of coupon payments and the difference between the price paid and the call price. Had the bond not been called, the yield to maturity would have been 12.8 percent. Bond calculators are available on this website: www.investinginbonds.com.
The yield on a bond calculated by dividing the value of all the interest payments that will be paid until the maturity date, plus interest on interest, by the principal amount received at the maturity date, taking in to consideration whatever gain or loss is realized from the bond at the maturity date. Example: You pay $900 for a five year bond at a face value of $1000. The bond pays an annual coupon of ten percent. Here the yield to maturity is 12.8 percent. This reflects the coupon payments and the difference between the price and the face value of the bond. Bond calculators are available on this website, www.investinginbonds.com.