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, ...

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, ...

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 version of this article was published in the November 2015 issue of Morningstar ETFInvestor. Download a complimentary copy of ETFInvestor here. Flaw of Averages Duration, by itself, is a crude ...

Bonds can provide passive income, some of which may be tax-free if you’re investing in municipal bonds. The tax-equivalent yield formula can be a useful tool for comparing taxable and tax-free bond ...

Bond math isn’t always intuitive, but a basic understanding of it lies within most investors’ grasp and can help them stay the course in turbulent markets. From 2021 to 2022, for example, the ...

In bonds, as in any other asset class, research is a must. Knowing the ins and outs of the product as well as reading the fine print is mandatory. Experts share the finer points that investors need to ...

Investing in bonds can be a smart way to diversify your portfolio, providing a reliable source of income and helping to balance the risk of more volatile investments like stocks. Bonds, which are ...

Modified duration measures price sensitivity to interest rate changes. The calculation for modified duration is relatively straightforward. Modified duration is important for investors in determining ...

HYG is a passively managed ETF that tracks high-yield, non-investment grade bonds. It offers monthly income but comes with high credit risk and potential defaults. HYG trades on exchanges for easy ...