Bond Investing

Bond current yield is a simple measure of what the bond will earn if you buy and hold it for a year based on its current price and coupon.

A bond valuation involves looking at two core figures: the present value of the coupon payment and the present value of the par value.

A bond ladder is a supportive strategy in which investors layer bonds with different maturity rates into a single portfolio.

Bond Funds have two primary goals: to generate passive income and to hedge against stock market volatility.

Bond ratings work to determine the credit worthiness of a bond. They’re a signal to prospective investors for reliability.

Bond futures are an agreement between two parties to transact securities, in this case bonds, at some time in the future.

A bond quote is what signals whether any given bond trades at a discount or a premium. This gives investors context for bond prices.

Bond equivalent yield is a way of valuing discount bonds to determine annual percentage yield using specific benchmark tools.