Perpetual bonds have no maturity date, allowing them to pay interest indefinitely, making them appealing for long-term income. They come in different types, such as government and corporate bonds, ...
When investors purchase bonds, they do so primarily to generate income. The expected annual rate of return is called the current yield, and it is a function of the current price and the amount of ...
Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Wanan Yossingkum / Getty Images An unamortized bond ...
One key aspect of any bond investment is its current yield. When a bond is brand-new, figuring out the bond yield is relatively simple, because in most cases, bonds are issued at prices that are close ...
The market price of a bond is determined using the current interest rate compared to the interest rate stated on the bond. The market price of the bond comprises two parts. The first part is the ...
Bond investors routinely have to make judgment calls about expectations on future conditions in the credit markets, including changes in prevailing interest rates and inflation. Using a break-even ...
Bonds don't get as much attention in the investing world as stocks do, but they play an equally important function in investment portfolios. The predictable cash flows that bonds offer stand in stark ...
Interest expense for discounted bonds includes amortized discount over the bond's term. Bonds issued at a premium reduce recorded interest expense by amortizing the premium. Bonds sold at face value ...
Charlene Rhinehart is a CPA , CFE, chair of an Illinois CPA Society committee, and has a degree in accounting and finance from DePaul University. Suzanne is a content marketer, writer, and ...