I see everyone stating that bond value decreases with interest in increase rates but to date, I am not able to understand by how much. For example, in a bear market, I understand that I may loose > 20% in stocks. Is there any such way o quantifying the possible loss in bonds.
Hypothetically, Lets say, the interest rates increase by 1% over a year from now -Approximately, by how much will 10k in short term / intermediate term/ long term bond get affected, all other things being equal [high quality bonds].
And do TIPS fare any better in the scenario of increasing interest rates?
Thanks everyone for the input.
Hypothetically, Lets say, the interest rates increase by 1% over a year from now -Approximately, by how much will 10k in short term / intermediate term/ long term bond get affected, all other things being equal [high quality bonds].
And do TIPS fare any better in the scenario of increasing interest rates?
Thanks everyone for the input.
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