Federal Reserve Board’s current and forward-looking position on interest rates

Federal Reserve Board’s current and forward-looking position on interest rates.

Respond to the following:

Given the Federal Reserve Board’s current and forward-looking position on interest rates, predict the level of risk associated with investing in bonds, and recommend a portfolio percentage for investment in bonds for a financial institution. Provide support for your recommendation.
Please provide one citation or reference for your initial posting that is not your textbook. Please do not use Investopedia or Wikipedia.
Be sure to respond to at least one of your classmates’ posts.
Below is the Classmate post to respond to:
(Hello Dr. Rawish and Classmates,Preserving principal, saving, managing interest-rate risk, diversification, and long-term planning are strategies that do not work if the bonds coupon payment or the return of its principal becomes uncertain. Bonds of all qualities carry inherent risks such as credit, default, and interest-rate risk. Credit and default risk can be mitigated by purchasing only investment-grade or U.S. government securities. Interest-rate risk can also be mitigated just by holding the bond to maturity as the par value will be returned upon maturity.If anyone of your stock accounts for 10% or more of your total equity exposure is concerned. It will let you know if your portfolio is adequately diversified and if your overall equity position is a significant part of your portfolio.)

 

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Federal Reserve Board’s current and forward-looking position on interest rates

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