Liquidity Preference Theory: MeaningLiquidity Preference Theory is a theory that suggests that investors demand higher interest rates or additional premiums for medium or long-term… Read Article
Understanding bond pricing is complex, sometimes even for experts. Markets quote bond prices in two different manners. They are dirty price and clean price.… Read Article
Maturity Risk Premium is basically the extra return that an investor demands or gets for bearing the maturity risk. Usually, the concept of maturity… Read Article
Nominal Yield: MeaningNominal Yield, also known as Nominal rate or Coupon yield, is the interest rate that the bond purchaser receives from the bond… Read Article
The current yield is the annual income from a financial instrument or an investment, usually bonds, based on its current price instead of the… Read Article
The term structure of interest rates or the yield curve is basically a graphical representation showing the relationship between the bond yields or the… Read Article