Bonds bought above face value add cost paid as "unamortized bond premium." Reduce premium annually to align bond's book value with redemption value at maturity. Consult tax advisor on premium tax ...

Investors demand higher returns from illiquid assets due to greater selling difficulty. Liquidity premium can be calculated by comparing yields of similar liquid and illiquid bonds. Real risk-free ...

Investing is about putting money at risk in order to earn a return. In theory, the more risk an investor is willing to accept, the more returns he or she should expect to earn to compensate for the ...