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Predict the level of risk associated with investing in bonds

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Reference no: EM131501048

Discussion: "Bond Risk Management"

Please respond to the following:

• Given the Federal Reserve Board's current and forward-looking position on interest rates, predict the level of risk associated with investing in bonds and recommend a portfolio percentage for investment in bonds for a financial institution. Provide support for your recommendation.

• Assess how an increase in the interest rate would change your recommendation provided above. Indicate the basis for your rationale.

• Please provide one citation/reference for your initial posting that is not your textbook. Please do not use Investopedia or Wikipedia.

Reference no: EM131501048

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