Is yield returned as cash? Can it be compounded?
To put numbers on it, say the first year's return is 7.5%, so a $10,000 investment after 12 months is worth 10,750. When the next year's inflation rates and yields are determined and applied, is it to the larger appreciated investment amount (e.g. where the prior year's earnings are compounded)? , Basically, does it count to the 10,750, the principal 10,000, or something entirely different?
Comments:
Is yield returned as cash? Can it be compounded? To put numbers on it, say the first year's return is 7.5%, so a $10,000 investment after 12 months is worth 10,750. When the next year's inflation rates and yields are determined and applied, is it to the larger appreciated investment amount (e.g. where the prior year's earnings are compounded)? , Basically, does it count to the 10,750, the principal 10,000, or something entirely different?
Post: Price Protection
Link to comment from October 10, 2021