Bank Analysis School eBook

Learning Objectives

1 – Impact on Other Components

2 – Investment Types and Terminology

3 – Yield Curve and Credit Risk Premium

4 – Interest Rate Risk

Bond Prices (Values) Move Opposite Interest Rates

5%

0% 3%

10-Year Treasury Yield

4%

3%

-9% -6% -3%

Appreciation/Depreciation % of Bond Portfolio

2%

-14.01%

1%

-15% -12%