Calculating interest can seem complex, especially when the terms "rate" and "yield" are involved. Right next to the annual percentage rate (APR) you often find the annual percentage yield [more…]
Over time, a modest-but-steady rate of compound interest can build into a sizable nest egg. The most powerful investments have stable, compounded returns. Regardless of what’s happening in the economy [more…]
Certificates of Deposits (CDs) are issued by large financial institutions, such as commercial banks, savings and loans, and other thrift institutions that aren’t in any danger of bankruptcy. Interest paid [more…]
Almost all bonds these days are issued with life spans (maturities) of up to 30 years. These life spans determine whether they are short, intermediate, or long. In the parlance of bond people, any bond [more…]
When you invest in bonds, bond salespeople will talk about several types of bond yields, including yield-to-maturity and yield-to-call. Understanding what kind of yield is being promised on a bond or bond [more…]
Some corporate bond issuers sell bonds that can be converted into a fixed number of shares of common stock. With a convertible bond, a lender (bondholder) can become a part owner [more…]
Several active futures and options exchanges exist in the United States. Each has its own niche, but some overlaps occur in the types of contracts that are traded. Here are the names to know among American [more…]