No. of Recommendations: 0
A question, as I am not familiar with bond/bond funds.

Suppose today I buy 10 year treasury bond worth 10K yielding 4.8%. Does this mean

1) As long as the bond price doesn't change, I will get $480/year.

2) Suppose the bond loses its value and it is now worth 9K, but the yield is 6%. Does this mean I will get interest payment of $600/year?

3) Also no matter what the yield is on maturity, will I get back my principle 10K?

What is the good source for a newbie to learn the basics of bond investing?

Print the post  


When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.