No. of Recommendations: 0
<There is no risk to principal, in holding a bond to maturity.

We must consider default risk.>

You make an excellent point. I did refer to risk premia, in my post, but didn't explicitly address the default risk.

Do you know where to find a chart of risk premia (for example, the difference between the yield on AAA vs. sub-investment grades) that covers several decades?
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.