The chart at the left shows how the funds have fared.
They invest in debt of fledgling or small firms whose staying power is untested as well as in the bonds of large, well known companies in weakened financial condition. Unauthorized duplication, in whole or in part, is strictly prohibited. In general, if you are looking for a core bond fund, I'd stick to a fund with a short to intermediate duration and medium or high credit quality. If you have a very short-term goal or know you will need to tap into the money within a year, I'd opt for a money market account. Just as you wouldn't want to have all of your stocks in just one style, you also want to diversify your bond portfolio. Reserve's raising short-term rates this summer or fall. Interest-Rate SensitivityThe bond style box's horizontal axis shows a fund's interest-rate sensitivity as measured by duration see definition below.
If you've stuck with the lesson to this point, you are probably interested in knowing more about how to purchase bonds. Interest is taxed at the federal level but not by the states. With bullets, bonds share the same target maturity date. For this reason, don't choose a fund based only on its yield. Government BondsConsidered the safest bond type, government bonds are backed by the U. That could be small consolation, perhaps, but it does give some perspective. In the past month, the yield on the 10-year Treasury has risen to 4.