Interest rate risk of bonds
One of the main ways this risk presents itself is when interest rates fall over time and callable bonds are exercised by the issuers. The callable feature allows the issuer to redeem the bond Understanding Interest Rates, Inflation And Bonds Measures of Risk. There are two primary risks that must be assessed when investing in bonds: Calculating a Bond's Yield and Price. To understand how interest rates affect a bond's price, A Bond's Relative Yield. The maturity or term of a bond