Callitaday2022
Recycles dryer sheets
I know there are several different categories of bonds, however this question is just generally speaking.
I understand that if you have a bond today, and interest rates go up, your bond is worth less because the new bonds are paying a higher rate.
What I don't understand, is how much less my bond fund would be worth? Obviously I think it would matter if it was short term, intermediate, or long term?
So if I have a total market bond fund that say is $10 per share, and is yielding 3% annually, what would the decrease in value be if the interest rates are increased .5 - 1% over the next year?
Thanks for some education
I understand that if you have a bond today, and interest rates go up, your bond is worth less because the new bonds are paying a higher rate.
What I don't understand, is how much less my bond fund would be worth? Obviously I think it would matter if it was short term, intermediate, or long term?
So if I have a total market bond fund that say is $10 per share, and is yielding 3% annually, what would the decrease in value be if the interest rates are increased .5 - 1% over the next year?
Thanks for some education