My online savings account is currently giving me 3% (with money guaranteed by the Aus. Government). Government bonds are yielding 3.8%.
With the yields so similar, why would you invest in bonds? The only reason would be that the bond value may rise.
If this is the case, do bond values rise enough to warrant the extra risk? For example if I bought $10,000 worth of bonds at the economic peak before the GFC and I sold those bonds at the economic bottom post GFC, what would be my capital gains?
Submitted November 06, 2017 at 08:02AM by doubleunderscore__12 http://ift.tt/2yzCvbe
