When people or businesses calculate their return on an investment, it is essential that they look at the after-tax rate of return, which takes into consideration the taxes that will have to be paid on ...

There is a lot more to investing in bonds than simply looking at the stated, or coupon, interest rate. Many bonds are callable, which means that the issuing company has a right to buy the bonds back ...

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 ...

Bonds can provide passive income, some of which may be tax-free if you’re investing in municipal bonds. The tax-equivalent yield formula can be a useful tool for comparing taxable and tax-free bond ...

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 ...

Companies pay dividends when they distribute a portion of their earnings to shareholders. Dividends can be paid in cash or additional shares of the company's stock, usually on a quarterly basis. Not ...

When you're shopping for a financial product like a savings account or CD, it can feel like you have to learn a new language to make sense of your options. Banks love to toss around terms like "APY" ...

Money market yield measures the annualized return on short-term, low-risk investments like Treasury bills and commercial paper. It helps investors compare the earnings potential of different money ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Robert Kelly is managing director of XTS ...

Notes: Source: Bloomberg, June 22, 2015 Price: Closing price per share P/B: Price to Book Value Ratio P/E: Price to Earnings Ratio Earnings Yield: Earnings divided by Price, expressed as a percentage ...