Because bonds trade in the secondary market, they may sell for less or more than par value, yielding an interest rate that differs from the nominal yield, called the current yield, or current return. Since bond prices move oppositely of interest rates, bond prices decrease when interest rates...
Bank analyst Meredith Whitney predicted that there would be hundreds of municipal defaults and hundreds of billions of funds lost in 2011. It was mentioned that one needs to be aware of the composition of total returns in a bond fund to understand interest rate risk.ThauAnnetteAAII Journal...
ML Muni Master [Merill Lynch US Corporate Master]: The Merrill Lynch Municipal Bond Master Index is a broad measure of the municipal fixed income market. Investors cannot directly purchase any index. LIBOR, London Interbank Offered Rate, is the rate of interest at which banks offer to lend mon...