The yield spread is the difference that occurs between the risk-free rate and the bond yield or even between two comparable assets.…
Category:
Essentials
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Yield to worst helps in measuring the lowest yield that can be received on a bond, considering the investment is completely operative…
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What is Yield to Maturity (YTM)? Yield to maturity is a long-term bond yield that comes in the form of an annual…
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The maturity date refers to the date at which the principal amount becomes due. The principal amount can be an acceptance bond,…
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Referred to as rupee-denominated bonds, the Masala bonds are named to represent Indian culture. The term ‘masala’ comes from Indian spices, and…
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Zero-coupon bonds are the ones that do not pay interest during the bond’s lifetime. Investors buy these instruments at a discount from…
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Investment-grade bonds, commonly known as high-grade bonds, are known to possess lower risk owing to their higher ratings. Good for maintaining a…
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Municipal bonds are debt securities issued by the government to fund its obligation. Investors can receive regular interest payments along with the…
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All the investments tend to suffer when there is high inflation in the economy. It happens because high inflation devalues the profits,…
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A current yield is a financial metric used to measure the income generated by an investment option, most usually a bond, relative…
