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
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- Coupon RateThe fixed annual interest a bond pays, shown as a percentage of its face value.
- Yield to MaturityThe total return you would earn on a bond if you held it until it matures and reinvested all interest.
- BondA loan you make to a government or company that pays you interest and returns your money on a set date.
- Dividend YieldA stock's yearly dividend divided by its share price, showing how much income you get relative to price.
- Face ValueThe amount a bond issuer promises to repay when the bond matures, also called par value.
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Plain-English education — not personalized legal, tax, or investment advice.