Post by FD1000 on Oct 6, 2023 14:14:23 GMT
The rule: Your total return, with dividends reinvested, and held for the DURATION of the bonds, will approximately equal your starting yield at purchase
This rule did not work as expected. In 10/2021 VGSH had a yield of about 0.5% with a duration of 2 years. You would expect it to make 1% in 2 years = 0.5% per year. VGSH lost about -2.8%(schrts.co/WZXEkghx), also see the chart below.
Rules are meant to be broken.
This rule did not work as expected. In 10/2021 VGSH had a yield of about 0.5% with a duration of 2 years. You would expect it to make 1% in 2 years = 0.5% per year. VGSH lost about -2.8%(schrts.co/WZXEkghx), also see the chart below.
Rules are meant to be broken.
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