Good corporate bonds yielding 8-12% -28% a year gain over 20 years
Will DIA get 28% a year Albertson Bonds will get 28% a year average gain per year if interest reinvested.If held for all 19 years.I bought the 2030 8.7% Albertson Bonds at an average price of about 85 giving me over a 10% real yield. So even if they are at 85 in 19 years I still get my 10%. Going to a compounding table for 10% compounded every 6 months we get a $538.55 gain on a $100 investment or $638.55 total including a original $100 investment.If you divide $538.55 by 19 years my average gain per year would be $28.34 or 28.34% on $100. Comprende??? This is with simple compounding. Forget YTM. If you add add in $15 gain from $85 to $100 par and total is $653.55 on a $100 investment would make it slightly more than 28.34%. Forget that. Take 28.34%. Thats what I would get average for 19 years if held to maturity 2030. For you if you bought now at $95- the actual yield at $92 on 8.7% yield is only about 9.45% if you bought now.Using this 9.45% we get a $477.98 gain on $100 or $25.16 average a year or 25.16% a year. So I apologise my original figure of 24.6% a year was a little low . Now if you cant figure this out I feel sorry for you.I used simple online calculators. Will DIA get 25% a year. Hahaha Other good bonds yielding 8-10% include Cincinnati Bell,American Stores,Genworth,JC Penney liberty Media For higher yield is Alon Krotz Springs,Appleton Papers at 11-13%. My average is about 11%
Hahaha You are back I could get out anytime I want. These are highly liquid bonds. I bet you didnt even check. The spreads are about 1%. Quite frankly I did back up the truck,and these bonds have been doing well. Genworth is up about 15% since I bought it. Cinci Bell about 10%. Albertson has been flat. Plus an average 11% interest You are a clown I dont need anyone to bail me out. I suppose I am up at least 10% in these bonds in the last 6 months. Wlile TLT gets you 3% a year. what a joke.