Coupon Rate vs Yield for a Bond

Comparison: Coupon Rate vs Yield for a Bond

Howdy Wall St. Willy! We talked about Coupon and Yield of a bond separately, but what’s the difference between the two of them anyway? Coupon or coupon rate is the rate of interest paid by the bond issuer. It is expressed as a percentage of the face value or the par value of the bond. …

Read MoreComparison: Coupon Rate vs Yield for a Bond

Coupon Rate vs Yield for a Bond
Bond Yield

What is Yield for Bonds?

Howdy Wall St. Willy! Sometime ago we talked about coupon and when we talked about that you said something about yield. But what is yield anyway? Yield is the rate of return you can get from making an investment in a bond at the current price. It’s expressed as a percentage just like interest rates. …

Read MoreWhat is Yield for Bonds?

Bond Yield
What is Diversification

What is Diversification and Why Should You Diversify?

Howdy Wall St. Willy! In the newspaper I read about diversification. What is diversification anyway? Diversification is investing money in different things instead of investing all of your money in just one or two things. Why would I need diversification? You need diversification to reduce the risk of losing money or getting negative returns. Well, who …

Read MoreWhat is Diversification and Why Should You Diversify?

What is Diversification
Certificate of Deposit or CD

What is a Certificate of Deposit or CD?

Howdy Wall St. Willy! I heard that interest rates in CDs are low lately. But what is a CD anyway? Well, a CD is a Certificate of Deposit. It is a place where you keep your money to get interest from the bank that you kept it in for the amount of money that you …

Read MoreWhat is a Certificate of Deposit or CD?

Certificate of Deposit or CD
Coupon Rate for Bonds

What is Coupon or Coupon Rate of Bonds?

Howdy Wall St. Willy! Sometime ago, I heard about a coupon that’s related to investing, but is it like a store coupon? What is it anyway? A coupon is the amount of interest a bond issuer pays periodically to the bond holder. Coupon or coupon rate is expressed as a percentage of the face value …

Read MoreWhat is Coupon or Coupon Rate of Bonds?

Coupon Rate for Bonds
Portfolio Rebalancing

What is Portfolio Rebalancing?

Howdy Wall St. Willy! Sometime ago, we talked about asset classes, and when we talked about that, you said something about portfolio rebalancing. But what is portfolio rebalancing anyway? Portfolio rebalancing (or portfolio re-balancing) is buying and selling securities from different asset classes to maintain the asset allocation that’s right for you. Well, when should …

Read MoreWhat is Portfolio Rebalancing?

Portfolio Rebalancing
Portfolio

What is a Portfolio or Investment Portfolio?

Howdy Wall St. Willy! On TV I heard about a portfolio but, what is portfolio anyway? Everything you invest in, is collectively called your portfolio. For example, if you have invested in stocks, bonds and real estate, together they form your portfolio. But, how do I decide what’s in my portfolio? This depends on your …

Read MoreWhat is a Portfolio or Investment Portfolio?

Portfolio
Asset Allocation

What is Asset Allocation?

Howdy Wall St. Willy! Sometime ago, when you talked to me about asset classes, you mentioned asset allocation. But what is asset allocation anyway? Asset allocation is deciding how much of your money to invest in different asset classes. But why do I even need asset allocation? You need asset allocation to achieve diversification so …

Read MoreWhat is Asset Allocation?

Asset Allocation

Start Now - It's Completely Free!

No spam guarantee - You can unsubscribe at any time.