What is the annual rate of return on a bond?

Answer The annual rate of return on a bond is determined at the time the bond is purchased. Bonds are also called fixed income securities, because the company or government entity issuing the bond sets a... Read More »

Top Q&A For: What is the annual rate of return on a bond

Required Rate of Return on a Bond?

A bond works like a loan between the issuer and the investor. The issuer receives a payment for the bond and promises to return the payment and make regular interest payments on that investment. Be... Read More »

What Rate of Return Might You Expect From a Bond Compared to Stocks?

A bond is a debt instrument that allows an investor to invest a certain amount of money for a specified period of time (until maturity) and receive a specified amount of interest annually. A stock ... Read More »

How to Distinguish Between Mean Return and Compound Annual Growth Rate (CAGR)?

Those that provide mutual funds often quote the performance in terms of Average Return.Alas, that isn't the return you'll get if you invest in such a fund (or stock): you'll get the Compound Annual... Read More »

What is the difference between rate of return&interest rate?

Rate of return, call known as return on investment, is a percentage of the total profit made from an investment compared to the amount of the investment. Interest rate is the percentage of a loan's... Read More »