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.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- Yield to MaturityThe total return you would earn on a bond if you held it until it matures and reinvested all interest.
- Face ValueThe amount a bond issuer promises to repay when the bond matures, also called par value.
- Current YieldA bond's annual interest payment divided by its current market price, showing income relative to today's cost.
- Treasury BondA long-term loan to the U.S. government that pays fixed interest and is considered very low risk.
More in Investing
Plain-English education — not personalized legal, tax, or investment advice.