I don't fully understand bonds, but I've been trying to get my head around the whole thing for a little while now. So interest rates are up today (a year after you'd posted this), but I thought high interest rates made bonds less appealing... I'm not understanding what this whole bond yield is. I know there's an inverse relationship between bond yields and interest. If bonds aren't appealing when interest rates are high, then what's with all this chatter about bonds right now? I'm not seeing how these things truly work together (or truly work against each other, lol). Can you help me get a better idea about these concepts? Thanks for your time!
I don't fully understand bonds, but I've been trying to get my head around the whole thing for a little while now. So interest rates are up today (a year after you'd posted this), but I thought high interest rates made bonds less appealing... I'm not understanding what this whole bond yield is. I know there's an inverse relationship between bond yields and interest. If bonds aren't appealing when interest rates are high, then what's with all this chatter about bonds right now? I'm not seeing how these things truly work together (or truly work against each other, lol). Can you help me get a better idea about these concepts?
Thanks for your time!
Neither do i, but we have a bond manager who does. i'd say, find a bond fund that you like, then give that manager your investments.