Bonds Interest Rate

chart bonds gif

Summary: value of bonds and bond mutual funds tends to go down as interest rates rise Furthermore investors who own individual bonds run the risk that the issuing agent may default on the bond From 1926 2003 US Treasury Bonds produced a gross return of 5 5 Unfortunately bond interest is taxed at ordinary income tax rates currently as high as 35 So a 5 5 bond may only net a

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