The key to get the most out of bonds is to hold
the bonds till maturity.
Someone who bought shorter duration bonds like 1 year or 5 years government bonds is not suffering capital losses when interest rates rise, just as long he can hold
the bonds till maturity.
Bond yield is the return you will receive if you hold
the bond till maturity.
This risk can be reduced by having bonds of different maturities (diversifying with short - term, medium - term, and long - term bonds) or by holding
a bond till maturity.
Not exact matches
Most of the time we view
bonds as something that is bought and held
till maturity.
Based on the premiums to hold CDS, and the costs to hold
bonds on margin (assuming
till maturity, any time frame), are CDS an adequate low cost hedge?
For
bonds, it's known as time
till maturity or duration.
Bonds and stocks don't always move in opposite direction; often they behave similarly, especially if you are buying bond funds and not individual bonds where you have an option of waiting till maturity and ignoring bond market fluctuat
Bonds and stocks don't always move in opposite direction; often they behave similarly, especially if you are buying
bond funds and not individual
bonds where you have an option of waiting till maturity and ignoring bond market fluctuat
bonds where you have an option of waiting
till maturity and ignoring
bond market fluctuations.