I’ve been researching short term bonds after the svb fiasco. My understanding is a % yield on a bond refers to the discount rate at the time of maturity. So a 1 year bond for $95 that yields you $100 has a rate of 5%.
If a 6 month bond has a 5% rate does that mean in 6 months the $95 turns into $100? If so, that would be 10% per year, right?
I think I’m missing something but not sure what
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