wrote an interesting post today on
Here’s a quick excerpt
Determining Yield On Bonds Determining Yield On Bonds Ignoring the maturity value, we say the “current yield” is the annual interest, $40, divided by the price, which gives five percent. But at maturity, this bond will have a value $200 more than its current price. The “yield to maturity” includes the prospective change in value as well as the annual interest. At present, the […]

Read the rest of this great post here