A reader named Charles asks a very good question about how bond indexes work?Quick question for you. I, of course, know how TIPS and bond works but what about a short-term bond indexes (XSB or XRB or TD e-Series) for instance? Does an investor actually gets coupon payment? (I dont think so...). Because the market value of the bond doesn’t change much, so the investor basically gets its return from the quarterly dividends only?I have a good understanding about how bonds work myself although I don’t know much about t[...]
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[Source: The Money Blogs]
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