Thursday, January 21, 2021

Bothersome Math in Bond Yield Years by Ruth Utnage

If you watch CNBC they display the yield percentages of bonds. Each bond yield percentage is separated by a length of time in years, the ones displayed are: 2yr yield, 10yr yield , and 30yr yield.

So what's my beef with this? It's not the amount of the yield that vexes me, no, it is not nearly that justified. It's that if I take 2 x 10 it equals 20, not 30. I would be much more inclined to purchase bonds if they were sold and displayed in multiples of one another such as 2yr yield, 5yr yield, and 10yr yield or 2yr yield,10yr yield, and 20yr yield. At least then it is aesthetically pleasing to me.

While I understand the world does not revolve around me and my admittedly pretentious outlook on bond yields, it makes me wonder if others like me exist?

Ahh, what it must be like to be normal...

With Love
Ruth



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