Coupon Rate:for an interest-bearing security, it isthe ratio of the annual coupon amount(coupon paid per year) per unit of par value. The current yield, on the other hand, is the ratio of the annual coupon divided by its market price at the moment. Ben Bernanke is an American economist...
What is annual percentage yield (APY)? Annual percentage yield, or APY, is the amount of interest you earn on your savings in a year, expressed as a percentage. APY takes into account how often interest is compounded and added to the account. Compound interest simply means that over time,...
What’s more, because of things like expenses, longer-term returns for an ETF will vary from those of its underlying asset. How ETFs Work: Key Takeaways 1. An ETF provider considers the universe of assets, including stocks, bonds, commodities or currencies, and creates a basket of them ...
APY is an abbreviation for “annual percentage yield,” which is the percentage that indicates how much interest a bank account, such as a certificate of deposit (CD) or a high-yield savings account, earns in one year. The higher the APY, the more you earn. Unlike a simple interest ...
The term "alternative investment" simply refers to an investment being alternative to stocks, bonds, and cash. Both an unboxed Star Wars figurine with appreciating value and a rundown local warehouse may fall into the definition of an alternative investment. ...
Are high-yield savings accounts insured? Is there a catch to a high-yield savings account? Subscribe to the CNBC Select Newsletter! Money matters — so make the most of it. Get expert tips, strategies, news and everything else you need to maximize your money, right to your inbox.Sign up...
How does a high-yield savings account work? High-yield savings accounts, in most other respects, work just like your usual savings account. They are oriented for long term savings, allow for regular deposits, and withdrawals, but may have monthly withdrawal limits, and are protected up to $...
What Is an Expense Ratio? More Getty Images Understanding how this important calculation works can help investors determine which types of funds tend to have low expense ratios. Investing in stocks can get you closer to your long-term financial goals. These assets gain value as the corporations ...
Equity is a common mortgage term that refers to how much ownership in your home you can access. Your equity is determined by the appraised value of your home minus the outstanding balance on your mortgage. Here’s a simple example using a 20% down payment: You buy a $400,000 home, usi...
Yieldis the income on an investment over a period of time. It is calculated by taking interest or dividends earned by the investment, then dividing them by the value of the investment. It’s usually expressed as an annual percentage, and excludescapital gains, which are the profits earned fr...