The Singapore Government 30-year bonds currently traded over SGX has a yield-to-maturity of 2.8% at this moment. This is the risk free rate that an investor could earn. In other words, if you buy the bonds today and held it till maturity you will receive the face value of the bond. The Singapore Government promised and is obligated to pay it back to her bond holders at maturity. Most investors are not satisfied with a 2.8% return and it is reasonable to demand for higher returns. In fact, it is quite easy to do so. However, higher returns will entail higher volatility (fluctuations in the value of your investment account) and most investors aren’t able to stay invested as a result. The stock market can decline 20% during a correction and 50% during a market crash. Most investors would turn from long term investors to short term traders, desperately selling their holdings to get ......