When interest rates go up, fixed-rate bond prices fall. This
is a fundamental principal of bond investing known as interest rate risk.
Bonds may be an important part of you investment
portfolio. That’s why recent articles in
the media about declines in
bond prices due to the potential rise in interest rates may have caught your
attention.
The Securities and Exchange Commission recently issued an
investor bulletin regarding interest rates and bond prices that explains
interest rate risk in more detail.
Be a savvy investor and learn more about the relationship of
bond prices and interest rates.
A Primer for Investing in Bonds
For even more information about bonds, be sure to check out
DFI’s and the Investor Protection Trust's free guide to investing in bonds.
This online booklet will teach you what bonds are, how they
work, the different type of bonds, and more.