FIN 355_”Bond Risk Management”

“Bond Risk Management” Please 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. 
  • Assess how an increase in the interest rate would change your recommendation provided above. Indicate the basis for your rationale.
  • Please provide one citation/reference for your initial posting that is not your textbook.  Please do not use Investopedia or Wikipedia.