Bond markets have enjoyed a prolonged period of rising


Bond markets have enjoyed a prolonged period of rising prices as interest rates have declined. The Federal Reserve is contemplating raising rates gradually as the economy shows its ability to support higher rates. You have a 5% corporate bond maturing in 3 years. Market rates are expected to increase from 2% to 2.5% shortly. What is the likely impact to be on the price of your bonds?

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Financial Management: Bond markets have enjoyed a prolonged period of rising
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