Cain1021 Cain1021
  • 02-03-2021
  • Business
contestada

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

Respuesta :

ReiChu
ReiChu ReiChu
  • 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

Answer Link

Otras preguntas

Unit rate for 240 kilometers and 2.5 hours show your work
True or false. Milton was born into a prosperous Puritan family
How can the distributive property be used to find 4x875?draw an array.
In which sentence is the participial phrase punctuated correctly? a. Craving, a midnight snack, I tiptoed to the kitchen. b. Craving a midnight snack, I tiptoed
Which Indian piece of literature contains the passages called the Bhagavad Gita? a. the Mahabharata c. the Ramayana b. the Siddheswara d. the Panchatantra
What value of x makes the equation true? 6.7 = –3.2 + x a. –9.9 b. –3.5 c. 3.5 d. 9.9
you have 4 gallons of gas in your car. Your car gets 23 miles per gallon. How many miles can you drive?
One coin is randomly selected from a jar containing 20 pennies, 15 nickels, 3 dimes, and 12 quarters. What is the odds of a value less than $0.05
if x equals 8-(-2.25) and y equals 6-4.2-(-4.9) what is the value of x-y
One coin is randomly selected from a jar containing 20 pennies, 15 nickels, 3 dimes, and 12 quarters. What is the odds of a value less than $0.05