This is a good read:
https://personal.vanguard.com/pdf/icrdir.pdf
Figure 11 illustrates how an intermediate term bond index fund fared in the late 1970's.
https://personal.vanguard.com/pdf/icrdir.pdf
Figure 11 illustrates how an intermediate term bond index fund fared in the late 1970's.
Over the long term, it’s interest income—and the reinvestment of that income—that accounts for the largest portion of total returns for many bond funds. The impact of price fluctuations can be more than offset by staying invested and reinvesting income, even if the future is similar to the rising-rate environment of the late 1970s and early 1980s
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