I'm a bit perplexed by corporate bonds. Treasuries are straightforward enough. Buy one and you're virtually guaranteed to earn the easily understood/found interest rate. I understand there's things like interest rate risk, which if I understand correctly just means if you were to sell early and interest rates went up, the bond price went down so you'd earn a lower return, or you'd be stuck at the rate you bought the bond at.
But for corporate bonds, I'm not sure how to understand/find the interest rates. On fidelity's chart here, it shows them having a lower rate than treasuries, but for reasons I don't quite understand, I've read that the numbers listed there aren't accurate rates for corporate bonds.
If I search for actual bonds it shows three yield numbers, one under bid and two (yield to worst and yield to maturity) under ask. I filtered for A to A+ bonds, and at the top is John Deere and the yield under bid is over 11%, but the yield to worst/to maturity is half that. What do these numbers mean?
Submitted June 17, 2023 at 03:42AM by Old_Rip1161 https://ift.tt/6lHvmxW
