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Since annual percentage rates in the economy change and the price for existing bonds is FIXED, falling rates in the economy make bonds in the marketplace preferable and investors bid UP prices (value). Rising rates send bond prices Downward. All bond total funds are affected by this “interest rate risk”, the actual best bond funds. End funds that hold securities that mature in twenty to thirty years considerably more tormented by the potential download mt4 exness for pc changing rates than those holding securities maturing in 5 years or less. Long term bonds and money that devote to them pay higher interest income than do their comparable shorter term counterparts, but who to help stay locked into a competitive fixed fee for 2 decades when rates are going up?
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