Question
If I have a portfolio consisting of two bonds and when the interest rates rise by 50 or 500 basis points, the portfolio value falls
If I have a portfolio consisting of two bonds and when the interest rates rise by 50 or 500 basis points, the portfolio value falls by 5000 and 50000 respectively. Is the portfolio well protected against interest rate risk, why or why not?
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Cases In Financial Reporting
Authors: Ellen Engel, D. Eric Hirst, Mary Lea McAnally
8th Edition
1618531220, 9781618531223
