These may make you reconsider whether to purchase a long-term bond.
Begin by entering the bond's coupon rate and maturity. The very last curve will be a lot taller, and end up at the par value B. Earlier prices weakened after a rebound in housing starts and a third straight monthly gain in core consumer prices suggested the Federal Reserve could still be under pressure to lift rates. The relationship holds as well for most cash flow vectors. While current yield is easy to calculate, it is not as accurate a measure as yield to maturity.
These may make you reconsider whether to purchase a long-term bond. Make sure the Internet icon is selected amongst the Web content zones. For a wealth of detailed investment insights and successful investor profiles, go to Investor Education. The left side represents n+1 different compound interest curves, all starting out now, and each one ending at the moment that the payout it corresponds to takes place.