Examlex
The current yield exceeds the yield to maturity if interest rates fall.
Interest Rate Risk
The potential for investment losses due to fluctuations in interest rates that affect the value of interest-bearing assets.
Real Rate
The interest rate adjusted for inflation, reflecting the real cost of funds to the borrower and the real yield to the lender.
Dirty Price
The price of a bond that includes accrued interest in addition to the bond's face value.
Yield to Maturity
The total return anticipated on a bond if the bond is held until it matures, including all interest payments and the repayment of principal.
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