Cain1021 Cain1021

02-03-2021
Business

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What is the risk you are taking when investing in bonds? How can you minimize this risk?

Respuesta :

02-03-2021

Answer:

Risk: The bonds you own will decline if interest rates rise, interest rate risk.

Minimalize:

- Don't buy bonds when interest rates are low or rising. Buy when stable.

- Stick to short term issues (3 - 5 years)

- Buy bond with different maturity dates

Explanation:

Good luck <3

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