AN INTRODUCTION TO A STATISTICAL STUDY OF BOND YIELDS.

The article discusses a 1929 study pertaining to the movement of U.S. bond yields. The investigation focused on high-grade U.S. public utility bonds. Researchers studied the coupon rate, price, yield to maturity, month and price of yield, and number of months to maturity of each bond. Yields are determined by prices and prices fluctuate according to the relation between the supply of and the demand for given securities. Preliminary results revealed that the long-term investor is able to realize more from bond sales nine years before the maturity date. The short-term investor buys from the best advantage at approximately five years before bond maturity.