Tagged Questions

2
votes
1answer
41 views

How can I estimate the sensitivity of a bond ETF's price to interest rate changes?

Is there a standard method for estimating the sensitivity of a bond ETF's price to interest rate changes? Some of the information I have includes the average duration and the SEC yield.
1
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1answer
94 views

Understand interest rate risk on a bond

I was wondering why there is interest rate risk on a bond that a financial services firm has sold, besides default risk on the bond? As far as I know interest rate risk means the risk that ...
1
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1answer
109 views

Will bonds (including international bonds) be able to offer more than 7% annual return?

I am presently getting a 6% return on my savings in a high-interest account, calculated daily, paid monthly. I regard stocks as too risky for my 4 year savings plan but am interested in bonds as they ...
2
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3answers
160 views

Understanding Interest Rate Risk: What is it, and what techniques do I use to minimize it?

I'm looking to develop a fixed-income account of bonds and dividend-paying equities. I've heard that bonds are susceptible to interest rate risk, but I don't really understand what that means. What ...