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Approximately drop by 50% if existing rates are near zero. That's because a 10% yield will double your money when a 10y bond matures. So existing bonds have to
by shukantpal 4y ago
Approximately drop by 50% if existing rates are near zero. That's because a 10% yield will double your money when a 10y bond matures. So existing bonds have to halve to double your money in the same way.
- deanmoriarty 4y agoSo the above poster's "Duration risk is (bps yield increase * years)" is not accurate?