Rising interest rates are affecting bond prices adversely, but will bond prices hurt long-term investors’ portfolios?
Both stocks and bonds have decreased in value. Rick Miller appeared as a guest on NPR’s Weekend Edition Sunday to discuss that issue.
When bond prices change due to credit changes or unanticipated inflation, investors can experience real bond return losses.
What are the sources of bond returns? How do bond valuation techniques (credit and interest rates) affect bond prices?