Bonds

  • What is a Share Buyback?
    A share buyback is a situation where a company repurchases its own shares.
  • Zero-Coupon Bond Value
    A zero-coupon bond, also called an accrual bond, is an interest-free debt security that trades at a steep discount.
  • What is a Bond?
    A bond can be defined as fixed income security that represents a loan by an investor to a borrower.
  • What is Principal?
    The principal is the total amount borrowed from a lender or the initial amount invested.
  • Bond Equivalent Yield
    Bond equivalent yield (BEY) is a rate that helps an investor determine the annual yield of a bond (or any other fixed-income security), that does not provide an annual payout.
  • Yield to Maturity
    Yield to maturity (YTM) is the total expected return from a bond when it is held until maturity – including all interest, coupon payments, and premium or discount adjustments.
  • Geometric Average Return
    The geometric average return formula (also known as geometric mean return) is a way to calculate the average rate of return on an investment that is compounded over multiple periods.