Would someone mind help clarify the difference between interest rate and bond yield?
To me, they seem to be the same thing but worded differently. Am I wrong? If so, why am I wrong? What am I not understanding?
So for example, this is how I understand the two:
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I put money into a saving account at the bank, and the interest rate is 2%. This mean I would get 2% of the original money I put into the saving account.
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I buy bond that has 2% yield. At the end of the term, I would get 2% of the amount that I spent to buy that bond.
Thanks.
Submitted March 06, 2021 at 06:03AM by b10m1m1cry https://ift.tt/3kOglqJ
