How Risky Are Bonds if Interest Rates Rise?

By Nash Dykes

Thirty-one years ago the yield on corporate Aaa bonds reached its 100-year peak of 15.5 percent. That was in September, 1981, and rates for bonds have fallen ever since, resting near 100-year lows today. This trend can’t last forever of course, and today many bond investors are grappling with the notion of a rising interest rate environment.

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