It’s difficult to justify the market’s price/earnings expansion without a meaningful decline in long-term interest rates and another period of “irrational exuberance” as seen in the 1990s.

The bond yield is calculated by using the following formula: Bond Yield= Coupon Amount/ Price What is the relationship between bond yield and bond price? The bond yield and bond prices are inversely ...

Fact checked by Vikki VelasquezReviewed by Cierra MurryWhat Are Duration and Convexity?Duration and convexity are two tools used to manage the risk exposure of fixed-income investments. Duration ...

Now that bonds offer decent yields, investors have been barreling into fixed-income mutual and exchange-traded funds. Taxable bond funds and ETFs pulled in net inflows (the sum of money deposited ...

In the U.S., it's partly due to expectations of a stronger, more inflationary future economy with bigger budget deficits.

Bonds can help diversify your portfolio, but they are not risk-free. Understanding the relationship between yield and price is key to getting the most from the bonds in your portfolio. Find out ...

The easiest duration to calculate is that of a zero-coupon bond. This bond has zero yield, which means it does not pay any interest. Its duration is equal to its time to maturity. When a coupon is ...

Because the yield has increased to 11%, Joe must now discount each payment, including the principal to be paid at maturity, at this higher discount rate. The bond’s price will therefore drop. Formula ...