The Vanguard High-Yield Corporate Bond fund has averaged a return of 11.9% over the last five years. What does the future hold?Ignore that past return. Start with the yield on the fund. The quantity that matters is not the fund's payout rate, which is 5.7%, but the so-called "SEC yield" of 4%. The latter number, calculated via a method spelled out by the Securities & Exchange Commission, allows for the price erosion of bonds that are trading at a premium and are destined to sink back toward par as they mature.
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