In this Wednesday deep dive of Sunday Money, we answer last week's question about a real-world bond investment made in 2013. We break down the mechanics of bond pricing, premium payments, and interest calculations, comparing the performance of a 20-year Treasury Bond to an equivalent investment in the S&P 500. Learn why a seemingly attractive 7.5% coupon rate might not always be the best investment choice, and discover the power of compound interest in index fund investing. We also discuss the trade-offs between risk and reward, the importance of diversification, and the value of understanding your investments thoroughly. Whether you're a seasoned investor or just starting out, this episode provides valuable insights into comparing different investment vehicles and making informed financial decisions. Don't miss this eye-opening analysis that could change the way you think about your investment strategy!
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