In more detail
A $1,000 bond with a 5% coupon pays $50 a year. When market interest rates rise, existing bond prices fall, and the reverse. The yield to maturity combines the coupon, price and time left.
Glossary
Finance
Bond
A bond is a loan to a government or company that pays regular interest (the coupon) and returns the face value on a set maturity date.
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See also
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Glossary
Dividend
A dividend is a payment a company makes to its shareholders out of its profits, usually every quarter.
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Glossary
Mutual fund
A mutual fund pools money from many investors to buy a diversified portfolio of shares, bonds or other assets run by a manager.