What factors will affect the yield of bond investment

The investment income of bonds is mainly composed of two parts: one is from the fixed interest income of bonds, the other is from the price difference earned in market trading. In these two parts of income, the interest income is fixed, while the bid ask spread is greatly affected by the market. The factors that affect bond investment income are as follows:

(1) Coupon rate of bonds: the higher the coupon rate of bonds, the higher the interest income of bonds and the higher the bond yield.

(2) Market interest rate and bond price: according to the calculation formula of bond yield, there is a reverse relationship between the change of market interest rate and the change of bond price, that is, when the market interest rate rises, the bond price falls, and when the market interest rate falls, the bond price rises.

(3) Investment cost of Bond: the cost of bond investment includes purchase cost, transaction cost and tax cost. The purchase cost is the amount that investors pay to buy bonds, and the transaction cost includes broker's Commission, transaction fee and transfer fee.

(4) Market supply and demand, monetary policy and fiscal policy: market supply and demand, monetary policy and fiscal policy will have an impact on bond prices, thus affecting the cost of investors to buy bonds. Therefore, market supply and demand, monetary policy and fiscal policy are also factors that can not be ignored when we consider investment returns.