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

User Mikef
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1 Answer

11 votes

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

Step-by-step explanation:

Good luck <3

User Hockeybro
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