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
- Interest Rate RiskThe risk that rising interest rates push down the value of bonds you already own.
- 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.
- Yield to MaturityThe total return you would earn on a bond if you held it until it matures and reinvested all interest.
- Bond LadderA set of bonds with staggered maturity dates so a portion comes due at regular intervals for steady access to cash.
- 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.