How do you calculate a bond's annual return?

If you've held a bond over a long period of time, you might want to calculate its annual percent return, or the percent return divided by the number of years you've held the investment. For instance, a $1,000 bond held over three years with a $145 return has a 14.5 percent return, but a 4.83 percent annual return.

Do bonds have different yields and market returns?

Bonds will have different yields and market returns based on the duration of the note, the issuer, the rate structure and more. A 10-year Treasury bond, for example, will have an entirely different profile from a 30-year BBB corporate bond. However there are a few broad averages we can pull.

What is the average return on a municipal bond?

Over the past 10 years it has averaged a 2.12% average annual return, although that figure has fluctuated from a 9.6% high to a -2.6% loss. This is consistent with the S&P 500 Municipal Bond Index, which has a 2.6% 10 year return. Remember, a financial advisor guide you through bond portfolios.