Wednesday, August 21, 2013

What is the average rate of return on a bond? and Bond No. 9

What is the average rate of return on a bond?



When I say bond, I mean all the types of bonds. So basically what I need is the average percentage return on all types of bonds (excluding any erratic ones.)

Thanks!




Bond best answer:

Answer by Big J
The ETF that tracks the Lehman Aggregate Bond Index has a trailing twelve month yield of 4.8%. That's as good of an "average" as anything else. However, you should note that short term bonds pay lower rates than longer term bonds. And, low risk bonds pay lower interest rates than high risk bonds. And if you buy tax advantaged bonds (like municipal bonds), the rates of return may be lower than taxable bonds. And if you buy a bond and sell it at a higher or lower price than what you paid for it, then your rate of return may differ from the published yield.


Bond

Bond No. 9
Bond

Image by Professor Bop
Perfume display at the Bond No. 9 flagship store on Bond Street in New York City.

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Published at: www.thepurplepassport.com/picks/newyork/shop/bond-no-9-ne...



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