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Introduction
There are many instruments to invest money in. Making a decision upon which one to use means that the investor needs to fully understand the in and outs of each instrument. By understanding the different instruments the informed investor can then evaluate which one provides the best return on the investment and proceed accordingly. One type of investment option is a bond, which is a debt security, in which the issuer owes the holders a debt and is obliged to repay the principal and interest at a later date, termed maturity (Wikipedia).
The market value of a bond can change after it is issued, so understanding the factors that can influence the value can be crucial in making informed financial decisions. If a 10% bond has a 9% yield to maturity, what does that mean to my coworker?










Yield to Maturity 3

Interest and yield to maturity are two terms commonly used to describe bonds. Interest is the price paid for borrowing money,......

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Approximate Word Count: 635
Approximate Pages: 3 (250 words per double-spaced page)

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