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The problem with informal observation is that sometimes it is right and sometimes it is wrong.
Investment Horizon
Investment Horizon denotes the period an investor expects to hold an investment before taking any return out of it.
Interest Rate Risk
The risk that the value of an investment will decrease due to a rise in interest rates, affecting especially interest-bearing assets like bonds.
Coupon Rate
The annual interest rate paid by a bond's issuer to its bondholders, usually expressed as a percentage of the bond's face value.
Yield To Maturity
The total return anticipated on a bond if the bond is held until its maturity date, considering all interest payments and the principal repayment.
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