This Layman's terms post explores bond yields, bond prices, their relationship, useful diagrams, yield curve + inversions and much more
If you buy a bond to yield X%, that calculation assumes that all coupon payments are also reinvested at X%, compounding to maturity.
Thank you for adding that important information Harry!
Thanks! I didn’t previously know about that assumption
Which is often a presumptuous assumption.
If you buy a bond to yield X%, that calculation assumes that all coupon payments are also reinvested at X%, compounding to maturity.
Thank you for adding that important information Harry!
Thanks! I didn’t previously know about that assumption
Which is often a presumptuous assumption.