Since bonds make payments on a fixed schedule, inflation can factor in over time, eroding the value of the bond. Economic price increases, known as inflation, cause the value of the bonds to ...

Fact checked by Vikki Velasquez Reviewed by Cierra Murry What Are Duration and Convexity? Duration and convexity are two ...

The coupon rate (also called nominal yield) is the annual coupon payments paid by the bond issuer relative to the bond’s face or par value. The formula to calculate the coupon rate of a bond is ...

Preferred stock combines features of both equity and debt. Unlike common stock, preferred shares often offer fixed dividends ...