What are Bond Returns?
Bond returns refers to the amount of loss or gain that is received from a bond investment. The calculation of the return on a given bond normally includes the purchase price plus any interest income earned from the bond purchase. Barring any unusual circumstances, bonds are considered one of the safest types of investments and almost always earn a positive return. As with other investment opportunities, the potential for higher bond returns involves purchasing a bond issue that carries a greater degree of risk. While bonds are a safe investment that appeal to conservative investors, there are several types of bonds that may be slightly more speculative, such as land bonds. With these riskier bond issues, it is often a good idea to look for investments that will mature in a relatively short period of time. The combination of higher potential bond returns and a maturity period of no more than a calendar year help to ensure there is less of a possibility of the bond funds being called and
