This guide explains how interest rates affect premium and discount bonds in clear, everyday language, so you can feel confident about what is happening inside ...

If you’re an investor focused on fixed-income securities, the prospect of a discount bond is an enticing one. It could be an opportunity to capitalize on a bond with several years of coupon payments ...

Once the bond is available in the market it begins trading at a premium or discount, depending on the market interest rate and bond coupon rate. When you buy a bond at a premium in the secondary ...

If you issue a bond at other than its face, or par, value, you must amortize the difference between the issue price and par. A premium bond sells for more than par; discount bonds sell below par.

Yield basis represents bond prices as yield percentages, simplifying comparisons between fixed-income securities. Learn how ...

Duration is the primary measure of interest rate sensitivity — it is the percentage change in price for a 1% change in interest rates. However, practitioners also look at convexity, which is the ...

Bond exchange-traded funds can be tricky to trade at times. Although these securities trade within a reasonable range of their net-asset value (NAV) most days, there are those periods when the ETF ...

Bonds help add diversity to your portfolio and control risk. But they can be complicated. Learning about how to buy and sell a bond is just as important as why to buy or sell a bond. These two things ...