Bond risk management

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Reference no: EM131421782

"Bond Risk Management"

Given the Federal Reserve Board's current and forward-looking position on interest rates, predict the level of risk associated with investing in bonds and recommend a portfolio percentage for investment in bonds for a financial institution. Provide support for your recommendation.

Assess how an increase in the interest rate would change your recommendation provided above. Indicate the basis for your rationale.

Reference no: EM131421782

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