Bond Duration, Fed Rate, and Valuation Change
Longer duration 6.8 years resulted in a 12.7% loss of principal, significantly greater than the incremental gain due to interest earned (2%). A bad trade-off.
Burning Thoughts
Longer duration 6.8 years resulted in a 12.7% loss of principal, significantly greater than the incremental gain due to interest earned (2%). A bad trade-off.