High Yield Bond Rates High Yield And High Price - Bond Question?
High Yield and High Price - Bond Question? - high yield bond rates
It is a question / answer, but DONT Investopedia understand very well. I know that if a few drops in bond prices, the rate of return (and vice versa, increase), but the following statement confused me.
"This is a frequently asked question: How much are the yields and prices both be good if it can not happen all at once? The answer depends on your point of view. If you're a bond investor, you high returns. A buyer wants up to $ 800 for the deposit of $ 1,000, which gives the bond a high yield of 12.5% to be paid. On the other hand, if you have a link that is locked in your interest rate, I hope that the bond price goes up. In this way you can charge for the sale of its obligations in the future. "
He says that if you have a link, we expect that the price will be? Why? u do not want to price reductions for higher yields. I do not understand what you mean by a withdrawal and sale of bonds in the future ...
Can you clarify this?
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