A fuller guide to this term is on the way. In the meantime, the related terms below explain the ideas around it.
Related MoneyPedia terms
- BondA loan you make to a government or company that pays you interest and returns your money on a set date.
- Maturity DateThe date a certificate of deposit or other fixed-term product ends, when you can withdraw your money and earned interest without penalty.
- Treasury BondA long-term loan to the U.S. government that pays fixed interest and is considered very low risk.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- CD (Certificate of Deposit)A bank product where you lock up money for a set term in exchange for a fixed interest rate.
- Interest Rate RiskThe risk that rising interest rates push down the value of bonds you already own.
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Plain-English education — not personalized legal, tax, or investment advice.