Bond investors need to know how to deal with bonds that cost more than their face value. Bond prices move up and down constantly, and it's common for bond investors to face situations where they have ...

The carrying value of a bond refers to its face value, plus any unamortized premiums or minus any unamortized discounts. We can quickly calculate a bond's carrying value with only a few pieces of ...

Bonds are investment vehicles that make regular coupon payments until maturity, at which time the bond's face value is paid. If a bond is callable, the issuer of the bond may terminate the bond's ...

If a bond is "callable," it means that the issuer has the right to buy the bond back at a predetermined date before its full maturity date. The call could happen at the bond's face value, or the ...

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 ...

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 ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J. Brock is a CFA and CPA with more ...

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom. The present value (PV) of a bond is the sum of ...

Bond prices move up and down constantly, and it's common for bond investors to face situations where they have to pay more than the face value of a high-interest bond in order to persuade the current ...

Calculate bond yield by dividing annual interest payment by current price. If bond is callable, consider potential early redemption by issuer. Use yield calculation to assess return against other ...