Does one always earn the yield to maturity on bonds?

Answer A bond's YTM, or yield to maturity, is a way to calculate your potential return when investing in a bond. Unless you buy a newly-issued bond, you probably will buy it for its face value and you pro... Read More »

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How to Calculate Semi-Annual Yield to Maturity Bonds?

When purchasing a bond, an investor technically provides a loan to the issuer. The bond comes with a set face value, interest rate, maturity date and payment schedule. As a result, if the investor ... Read More »

Are high-yield bonds better than regular bonds?

On One Hand: Higher Risk.High-yield bonds are bonds that have been rated BB or lower, and they are often referred to as speculative or junk bonds. Regular bonds, called investment-grade bonds, have... Read More »

Define Yield to Maturity?

The term yield to maturity, or YTM, applies to the rate a bond investor will earn on a specific bond based on the current price of the bond. The yield to maturity value is the best way to compare t... Read More »

How to Calculate Yield to Maturity?

Yield to Maturity (YTM) for a bond is the total return, interest plus capital gain, obtained from a bond held to maturity. Yield to maturity is a useful measure of the attractiveness of a seasoned ... Read More »