LONG-TERM RETURNS AND RISK FOR BONDS

The authors estimate monthly yields and returns and associated risks f or government and corporate bonds over the longest period possible (18 57-1995) on both a nominal and an inflation-adjusted basis. This data series provides additional insights into the long-term returns and ris ks from bonds, and provides a perspective on public arguments about th e validity of alternative sources of data about bonds. The data are re alistic estimates of the actual experience of bondholders over the via ble history of bonds as an investment on a consistent basis, and can e asily be updated by users of such data on a real-time basis with the m ethodology outlined.