Low coupon interest rate risk, mutual funds and mutual fund investing - fidelity investments
Dhiraj Shah from TX posted about 1 year ago: Also you need a point of reference when buying bond funds.
As interest rates rise, bond prices usually fall, and vice versa. Jim, most bonds pay a fixed amount of interest, so the interest payments you receive aren't affected by the bond price.
The Business Cycle As rates increase, bond prices decline and vice versa.
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