Is a high yield to maturity good or bad?
By IndianMoney , 5 months ago
IndianMoney
5 months ago
1. High Yield bonds are high yield in order to pay you for the extra default risk that you take on by purchasing them. 2. Low yield bonds carry less default risk and so you are more likely to collect all the coupon payments and carry it to maturity. neither is inherently bad or good.
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