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Strategies & Market Trends : VOLTAIRE'S PORCH-MODERATED

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To: freeus who wrote (34875)3/28/2001 5:10:51 PM
From: Jim Willie CB  Read Replies (1) of 65232
 
if you buy a corp bond paying 6.5%
in a few months suppose the same bond offers yield of 6.0%...
then your investment has earned some money in yield interest in the meantime
but it also has risen in price on a principal basis !!!
all bonds has seen rates drop in the last few months
some have dropped substantially, unless from high risk internet startups

/ jim
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