When It Comes To Bonds And Interest Rates, The Market Is A Great Equalizer
Thursday, May 23, 2013 - 8:36 AM
I have two questions about bond investments. First, with individual bonds, would a person be better off keeping the bonds to maturity when rates went up and receiving the full value at maturity? Or should he sell and reinvest in higher interest rate bonds? Second, does this work with bond funds? Do fund managers hold bonds to maturity, or do they generally sell and reinvest when interest rates are going up?