The expected return of bonds
This note explores the conventional wisdom that suggests that the yield to maturity at the time of buying a bond or bond fund is a good estimate of the return an investor should expect over the subsequent 10 or so years. On the way to addressing that issue the note also discusses some essential concepts and features of the world of bonds.
Collection: IESE (España)
Ref: FN-654-E
Format: PDF
Number of pages: 11
Publication Date: Jul 16, 2024
Language: English
Description
This note explores the conventional wisdom that suggests that the yield to maturity at the time of buying a bond or bond fund is a good estimate of the return an investor should expect over the subsequent 10 or so years. On the way to addressing that issue the note also discusses some essential concepts and features of the world of bonds.
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