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Read the following article from the SEC that discusses interest rate risk: SEC – interest rate risk.pdf
Access the 10 Year Treasury curve on the St. Louis Fed’s website: https://fred.stlouisfed.org/series/DGS10. Switch to view the past one year of data (click “1Y” above the graph).
Address the following questions on this discussion board:
If you bought bonds one year ago, what has been the effect of the trend in interest rates over the past year on the value of your bonds? Please explain.
If you plan to buy bonds today, what effect do you think that interest rates will have on the value of your bonds over the next year? Please explain (you might want to do some additional reading to see what investors are anticipating for interest rates over the next year … be sure to cite your sources).