#investing #bonds Bond basics"A bond is a debt instrument in which an investor loans money to an entity (mostly corporate or government) who borrows the money for a certain period of time at a fixed or variable rate of interest."Terms related to bond
CouponIt is the annual coupon payments paid by the issuer relative to the bond's face or par value.
Current yieldIt is the rate of return on your bond investment.
Yield to maturityYTM is the total return anticipated on a bond if the bond is held until its maturity.
Accrued interestIt is the unpaid interest between
the previous coupon payment date
and the date of purchase.
Clean priceIt is the price of a coupon bond that does not include any accrued interest.
Dirty priceIt is the price of a coupon bond which includes the accrued interest.
