Talk of The Villages Florida - View Single Post - I just don't get the wisdom of investing in bond funds.
Thread: I just don't get the wisdom of investing in bond funds.
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Old 11-11-2023, 11:55 AM
retiredguy123 retiredguy123 is offline
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Quote:
Originally Posted by Robbb View Post
On May 1st 2007 BND closed at $74.77, on November 10th 2023 BND closed at $69.68
Those numbers are the net asset value for a one share in the fund. But, if you reinvest the interest earned, you will automatically purchase more shares, so you will have a lot more shares over time. There may also be capital gains distributions that will increase the number of shares. The total return is calculated by the increase in your fund balance over time, assuming that you reinvest the income.