The payments remaining on an interest-paying bond or instrument, plus principal, are totaled up and then annualized, and this annual rate is the yield to maturity.
Yield to maturity is a calculation that helps an investor decide if he or she is getting a good deal. If yield to maturity is greater than the coupon rate, the bond is trading a a discount. If yield to maturity is less than the coupon rate, it is selling at a premium. If they are equal the bond is trading at par value.
This calculation is also useful for zero-coupon bonds so that an investor gets a better idea of how it compares to other investments. If a bond is callable the investor will do a similar calculation to determine the yield-to-call. The yield-to-maturity assumes the investor holds the bond until maturity.
There’s no reason why you shouldn’t be able to choose investments that are suitable and beneficial for you
SEP IRA is a benefit for employees that uses employer contributions to fund retirement investment accounts for employees
All employees that meet minimum eligibility criteria must be included in a SEP IRA arrangement
Whether you should own a long-term care insurance policy depends on a myriad of factors, including but not limited to...
The Equity Risk Premium (aka, Equity Premium) is the expected return of the stock market over the risk-free rate
Preferred stock are dividend-paying equity shares issued by corporations, which pays a dividend with a higher priority
Fibonacci numbers are part of a sequence where the ratio of two neighboring numbers is the Golden Mean
A business with a fast ‘cash conversion cycle’ can efficiently use funds to fulfill the different needs of the business
Gains/losses from investment activities are recorded in a portion of the Cash Flow Statement called Investing Activities
Foreign Transaction Fee. Credit cards & debit cards will charge an additional percentage on transactions made abroad