Wednesday, November 9, 2016

When bond yields go up, the value of bonds go down

http://www.marketwatch.com/investing/bond/tmubmusd10y?countrycode=bx

If you own bond mutual funds, you may want to figure out how much at risk you are of losing a good chunk of money if interest rates rise further.

If you buy a $10,000 FDIC insured CD, you get your money back and the interest paid.

If you own $10,000 worth of a bond mutual fund, you have no guarantees of return of principle or a guaranteed interest rate.