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A bond is one type of investment. The bond is a debt security, in which the seller owes the purchaser a debt and is obliged to repay the principal and interest at a later date. This later date is termed as the maturity. A bonds market value may change after issued, so understanding what can influence the value is crucial in making informed financial decisions.
Yield to Maturity
The two most common terms used to describe bonds are yield to maturity and interest. The yield to maturity is used to classify the rate of return the investor will receive if a bond reaches its full maturity (Webster’s)...
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