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Corporate bonds yielding 6 to 8%? |
Please give me some suggestions on some investment grade bonds that yield to maturity (5 to 10 years) 6 to 8% with reasonable risk? Investment grade bonds are yielding around 4.5 to 4.7% for 5 to 10 year maturities. Junk is yielding about 8%. Investment grade bonds (A) do not yield that much now. Need to go to equities or foeign bonds or high yield (low-rated) bonds to make that much. Avoiding risk costs you & often is dead-wrong. A nice Reit like SNH can do that % in total return most yrs. Now a days corporate bonds are not give much profit. Mutual fonds is more better than bonds. |
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mm.. I'm seeing it more like at 5.35% now ... E for sure. Bs phrasing not 100% certain ...I assume this is a question on a test. If so, the answer is undoubtedly: statements a and b are correct. The problem with statement b is in the word "highly". "Junk bond" ... Assuming "interest" on mutual funds is equal to dividends in the problem; Givens: $33250 = .05s + .07m + .15b b=3(s) .15b=.07m simultaneous equasions: $33... savings = $83,695 bonds = $251,085 mutual funds = $46,497 Set savings =s, bonds = b, and mutual funds = m. Now create formulas using the information given: b=3s .05s + .09m + .12b = $38,500... Bonds give higher interest rates compared to short-term investments; plus municipal bonds are tax free, which may be the biggest benefit when compared to CDs. CDs have the highest earnings potenti... To answer your first question on the paper bonds they will be guaranteed to be at face value at year 20. If you buy a $100 bond at $50, then by year 20 it will be worth at least $100, thus double.... 1. Fixed amount of income each year and your capital back at a fixed date. So, security, certainty. 2. Short maturity, so appropriate when you know you'll want the money back or don't ... |
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