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Thanks jbking, Lokicious, now I have a better picture of bond yields...

My impression after going through your replies is - "If I buy a normal treasury bond (not TIPS) for 10K with yield 4.8%, I will continue to get $480/year as long as I hold it, irrespective of the bond price and yield. And if I hold it till maturity, it is almost like a 10 year CD with 4.8% interest rate." Am I right?

jbking, nice cautionary comments :) I will go through the sources you have mentioned, but it might take some time...

I invest/trade a lot in stocks and options, but bonds are new to me. Till now, I was always thinking of capital appreciation, but slowly I am looking at my portfolio as a source of regular steady income. One of these days, I will explain my situation to you and I will be looking forward to your comments.

Thanks again...
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