Constant maturity debt funds gain in long term whether rates rise or fall: Mahavir Kaswa
Constant maturity debt funds gain in long term whether rates rise or fall: Mahavir Kaswa
When bond yields rise, bond prices fall and the reverse too is true. This is termed interest rate risk. When the duration of a bond's portfolio - a measure of the bond's interest rate risk calculated using maturity, coupon and current yield - is high, the interest rate risk is also high, and vice versa.
When bond yields rise, bond prices fall and the reverse too is true. This is termed interest rate risk. When the duration of a bond's portfolio - a measure of the bond's interest rate risk calculated using maturity, coupon and current yield - is high, the interest rate risk is also high, and vice versa.