Annual percentage yield (APY) is the effective annual rate of return on an investment. Learn how it accounts for compounding interest and how it differs from APR.

The formula for calculating a dividend’s yield can be broken down into two key steps. A dividend is a payment from a company or other entity to shareholders tied to ownership of a stock or another ...

When people or businesses calculate their return on an investment, it is essential that they look at the after-tax rate of return, which takes into consideration the taxes that will have to be paid on ...

When investors purchase bonds, they do so primarily to generate income. The expected annual rate of return is called the current yield, and it is a function of the current price and the amount of ...

T-bills are sold at a discount to their face value. They offer returns at maturity without periodic interest payments. With T-bill yields higher in recent years, they can be an excellent, low-risk way ...

If a bond is "callable," it means that the issuer has the right to buy the bond back at a predetermined date before its full maturity date. The call could happen at the bond's face value, or the ...

Companies pay dividends when they distribute a portion of their earnings to shareholders. Dividends can be paid in cash or additional shares of the company's stock, usually on a quarterly basis. Not ...