Yield maintenance and defeasance are two common methods used to compensate lenders for the loss of interest income on commercial loans. Both terms refer to prepayment penalties designed to preserve ...

When it comes to calculating interest rates for investments and bonds, the Yield and IRR formulas in Excel can quickly become your friends. Whether you're considering buying a bond or investing in a ...

Internal rate of return (IRR) and yield to maturity are calculations used by companies to assess investments, but they refer to different things. Here's what each term means, and an example of when it ...

When it comes to finance, some terms may seem interchangeable, but it's important to understand the differences between very similar concepts. In most cases, when looking at investments, one evaluates ...

Thomas J Catalano is a CFP and Registered Investment Adviser with the state of South Carolina, where he launched his own financial advisory firm in 2018. Thomas' experience gives him expertise in a ...

The dividend yield measures the income you earn from holding a stock. When a company makes a profit, it has two choices. First, it can retain the earnings for future investment. Second, it can payout ...

However, YTM for an investment can be approximated rather easily by combining the coupon yield with the difference between the market price and the face value of the bond using the following formula.