EDU Articles
Learn about investing, trading, retirement, banking, personal finance and more.
What is Yield to Maturity?
The payments remaining on an interest-paying bond or instrument, plus principal, are totaled up and then annualized, and this annual rate is the yield to maturity.
Yield to maturity is a calculation that helps an investor decide if he or she is getting a good deal. If yield to maturity is greater than the coupon rate, the bond is trading a a discount. If yield to maturity is less than the coupon rate, it is selling at a premium. If they are equal the bond is trading at par value.
This calculation is also useful for zero-coupon bonds so that an investor gets a better idea of how it compares to other investments. If a bond is callable the investor will do a similar calculation to determine the yield-to-call. The yield-to-maturity assumes the investor holds the bond until maturity.
What is a Preferred Stock?
Preferred stock are dividend-paying equity shares issued by corporations, which pays a dividend with a higher priority
What are Fibonacci Numbers?
Fibonacci numbers are part of a sequence where the ratio of two neighboring numbers is the Golden Mean
Can I choose good investments?
There’s no reason why you shouldn’t be able to choose investments that are suitable and beneficial for you
Should I Buy a Long-Term Care Policy?
Whether you should own a long-term care insurance policy depends on a myriad of factors, including but not limited to...
What is a SEP IRA?
SEP IRA is a benefit for employees that uses employer contributions to fund retirement investment accounts for employees
If I Want to Establish a SEP IRA, Do I Have to Establish One for All Employees of My Business?
All employees that meet minimum eligibility criteria must be included in a SEP IRA arrangement
What is a Cash Conversion Cycle?
A business with a fast ‘cash conversion cycle’ can efficiently use funds to fulfill the different needs of the business
What is the Equity Risk Premium?
The Equity Risk Premium (aka, Equity Premium) is the expected return of the stock market over the risk-free rate
What is Cash Flow from Investing Activities?
Gains/losses from investment activities are recorded in a portion of the Cash Flow Statement called Investing Activities
What is a foreign transaction fee?
Foreign Transaction Fee. Credit cards & debit cards will charge an additional percentage on transactions made abroad