In bonds, what does the annualized yield mean since its inception

The data of a certain period of time is converted into a year's data according to the annual proportion.

The annualized rate of return is only calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into adult rate of return, which is a theoretical rate of return and not a real rate of return obtained.

Annualized rate of return: Currency**, net income per 10,000** share over the past seven days, converted into annual yield. There are two ways to carry forward earnings in the money market**:1

Daily dividends, carried forward on a monthly basis", which is equivalent to daily simple interest, monthly compound interest; 2."Daily dividends, carried forward on a daily basis", which is equivalent to compound interest day by day. Simple interest is calculated as follows:

RI 7) 365 10000 Compound Interest 100% Compound Interest is calculated as follows: ( RI 10000 Shares ) 365 7 100% where RI is the nearest i(i=1,2

1. The average annualized rate of return of pure debt** is generally between 3% and 4%;

2. The average annualized rate of return of partial debt hybrid ** is generally between 5% and 6%;

3. The average annualized rate of return of stocks and bonds is generally between 10% and 15%;

4. The average annualized yield of bond strengthened** is generally between 20% and 25%.

However, according to the market, the market may exceed 20% if it is good, and it is possible to lose 20% if it is not good, and there are some leaders with outstanding ability who will have a profit of around 30% or 60% a year. The above is the approximate annualized rate of return of bonds**.

1. The company has a debt crisis: after all, the bond ** not only invests in treasury bonds, but also invests in some corporate bonds.

2. Buy high and sell low: The ** of the bond ** is not static, it will also change, when the cost of **supervisor** is higher than the real-time**, it represents a loss;

3. Rising interest rates: The rise and fall of bonds and interest rates are reversed, and if the interest rate increases, the bonds will fall, and if the interest rate is reduced, the bonds will rise, and when the interest rate decreases, users will buy long-term bonds with strong interest rates to lock in profits, and then push up the bonds.

Bonds are not guaranteed, and there is a probability of loss, which is generally sold when the bond is low and strong, but many users can't do this, so they lose money.

Bonds are more suitable for short-term, according to statistics, for most bonds, most of them will be floating profits if they are held for more than a year, not that the longer they are held, the more significant the effect of making money, nor the longer they are held, the more they will earn.

There is still a fundamental difference between the bond type and the bond type, the bond type can be held for a long time, but the fluctuation of the bond type is relatively small, if the fixed investment in the process of the bond is low, and the undervaluation of the bond will be greatly reduced in the probability of loss in the length of 1 to 3 years. This article mainly writes about the approximate annualized rate of return of bonds, and the content is for reference only.

1. The annualized interest rate is the annual interest rate. The annualized interest rate is the interest rate that is discounted to the full year through the product's intrinsic rate of return. Assuming that the return period of a financial product is A year and the yield is B, then the annualized interest rate r is the difference between 1 and B and the power A and 1, that is, (1+B) to the power A minus 1.

Interest calculation formula: interest = principal annual interest rate time (years).

2. The annualized rate of return is calculated by converting the current rate of return (daily rate of return, weekly rate of return, monthly rate of return) into an adult rate of return, which is a theoretical rate of return and not a real rate of return obtained.

3. Example: For example, if a bank sells a wealth management product, the 60-day annualized income rate is 100,000 yuan, then you buy 100,000 yuan, and the interest you can actually receive is 100,000 * yuan.

What is Annualized Yield?

The annualized rate of return is constantly changing, and it is calculated by converting the current rate of return (daily, weekly, and monthly) into adult years. It is a theoretical rate of return and is not something you actually get from investing.

Calculation: annualized rate of return = daily rate of return 365 = monthly rate of return 12.

For example, the common annualized rate of return in the past 7 days; If the return level of the past 7 days is maintained in the next year, then the return for the next year is the same as the annualized return for the last 7 days. We all know that it is not easy for floating income products to maintain the level of income of the past 7 days in the next year.

The annualized rate of return can be divided into the annualized rate of return of the last 7 days and the annualized rate of return of the last 14 days. It is more accurate when calculating the earnings of the last 7 or 14 days. Of course, if it is an annualized rate of return in the past year, then it is the real annual rate of return.

What is Expected Yield?

Expected rate of return, also known as expected rate of return, refers to the future achievable rate of return of an asset under uncertain conditions. For the risk-free rate of return, it is generally based on the annual interest rate of the long-term bond.

Annualized rate of return ≠ expected rate of return. Both the annualized and expected rates of return are theoretical returns.

The annualized rate of return of bond ** is usually maintained at about 5%, which will be higher than that of bank wealth management, treasury bonds and other products in the same period, and the yield of bond ** depends on the management ability of **manager and the monetary policy at that time.

Extended Materials. Bonds**, also known as bonds**, refer to the bend that invests in bonds, which seeks more stable returns by concentrating the funds of many investors to invest in bonds in a portfolio.

In China, the investment objects of bonds** are mainly treasury bonds, financial bonds and corporate bonds.

Introduction to the characteristics of bonds**.

Merit. It can enable ordinary investors to easily participate in the investment of interbank bonds, corporate bonds, convertible bonds and other products. These products have all kinds of inconvenient restrictions on small funds, and the purchase of bonds** can break through this limitation.

In times of downturn, bond yields remain stable and unaffected by market volatility. Because the returns of bond investment products are very stable, and the corresponding returns are also very stable, of course, this also determines that its income is subject to the interest rate of bonds, which will not be too high. The annual interest rate of corporate bonds is around the same level, and after deducting the operating expenses of **, the annual yield can be guaranteed to be in between.

Shortcoming. Only if you hold it for a longer period of time can you get a relatively satisfactory return.

When the bond market fluctuates, there is even a risk of loss.

Bonds (bonds, debenture) are issued by the issuer to raise funds, pay a certain amount of interest at an agreed time, and repay the principal at maturity. Its essence is a certificate of debt, which has legal effect, and the issuer is usually **, enterprises, banks, etc. Bonds have the least risk because they are protected by taxes, but they also have the least returns.

Corporate bonds are the riskiest and have correspondingly higher returns. The bond purchaser or investor and the issuer are in a creditor-debt relationship, with the bond issuer being the debtor and the investor (bond buyer) being the creditor.

Both bonds and bonds have a price, and both have the characteristics of a price, such as lack of income, liquidity, risk, and maturity. Their investments are all ** investments.