Tagged Questions
2
votes
2answers
181 views
How is investing in a bond fund different than investing in a stock?
You don't have the option to "hold it till maturity", so you are invariably exposed to interest rate risk, and as a consequence, you will probably gain or lose on your principal in the end. Isn't it ...
5
votes
2answers
96 views
How do bond funds have a higher return that the sum of their bond parts?
In looking at bond funds recently, I've seen many that have a return of about 7% annualized over 5 years. However, their holdings are bonds that return 2-5% annualized. How is it possible that the ...
