The exchange rate determines how much of one currency you will receive for another. It can be a useful piece of information for investors.
The article offers information on yield, a term often used in the investment sector. Yield can be defined as a security's annual percentage rate of return, or as the annual income from an investment as a percentage of a price at a particular point in time. Yield can also be used to ...
What is a risk-free rate? Definition and meaning Risk-free rate refers to the yield on top-quality government stocks. It is often called the risk-free interest rate. The risk-free benchmark, for the majority of investors, is the US Treasury yield – other assets are measured against it....
A deferred fixed annuity works similarly to a bank certificate of deposit (CD), but it is not covered by FDIC. These annuities are offered by insurance companies and their rates are quoted as an “Effective Annual Yield.” You will be given the option to choose the guaranteed income period...
Yield to maturity (YTM) is the annual expected return of a bond if held until maturity, also referred to as book yield.
A high-yield savings account is a type of savings account that pays a better-than-average interest rate, according to Frank Newman, director of portfolio construction and due diligence at Ally. "They are simple to use and offer you flexible access to your money at any point," he says. Sp...
“The return on an investment, expressed as a percentage of cost. Straight yield or current to yield is found by dividing the market price into the dividend rate in dollars (for stocks) or interest rate (for bonds). It ignores the factor of maturity or possible call at a higher price or...
What is Interest Rate Parity? What is an Adjustable Rate Loan? What is an Annual Equivalent Rate? What is an Effective Annual Yield? What is an Effective Interest Rate? What is a Fixed Interest Rate? Discussion Comments WiseGeek, in your inbox ...
An ETF is a tradeable fund, containing many investments, generally organized around a strategy, theme, or exposure. That approach could be tracking a sector of the stock market, like technology or energy; investing in a specific type of bond, like high-yield or municipal; or tracking a mark...
By providing direct rate exposure in a standardized and efficiently traded vehicle, interest rate futures afford participants a useful tool to manage risks or capitalize on rate swings across the yield curve. Their unique settlement procedures make investing based on your expectations for future interest...