But, unless you buy a new issue (something that's probably not an option for a retail investor?), won't such expectations/projections be already factored into the market price for a bond so there's no free lunch here?You would be better off just buying government bonds than these , the 10year irish government bond yield isnow 2.6% and this is likely to go alot higher as interest rates keep rising
yes but its still a hell of a lot better than a prize bond, if you only buy a relatively short dated one not greater than 10 years, you dont have to worry about bond price fluctuations you just hold it to maturity, Yes interest rates will probably continue to rise so just gradually invest the money to take advantage of falling bond prices, I'm just introducing government bonds to point out what a lousy deal prize bonds areIf you buy a Government Bond on the secondary market, the interest you earn is built-in at the time of purchase assuming you hold the bond until maturity.
So future rises in the interest rate will not increase the interest you earn at all and, if you have to sell the bond before maturity, you will probably make a capitial loss as the price will be below what you paid to buy it
Prize Bond prizes will increase in the next few months as the prize fund is based on interest ratesYou would be better off just buying government bonds than these , the 10year irish government bond yield isnow 2.6% and this is likely to go alot higher as interest rates keep rising