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.
- Coupon RateThe fixed annual interest a bond pays, shown as a percentage of its face value.
- YieldThe income an investment pays you each year, shown as a percentage of its current price.
- Maturity DateThe date a certificate of deposit or other fixed-term product ends, when you can withdraw your money and earned interest without penalty.
- 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.
More in Investing
Plain-English education — not personalized legal, tax, or investment advice.