How Will Interest Rate Changes Affect the Value of My Bonds?

January 2, 2020

We see this question often and have responded periodically by updating and publishing the table to the right, which looks at 5-year, 10-year and 30-year current coupon Treasury bonds as well 10-year zero coupon Treasury bonds.

(Note: Treasury zeros are “strips” that are derived from breaking up or stripping a Treasury bond into its separate interest and principal streams, in this case a Nov. 15, 2029 interest payment from a 30-year bond issued in 2000.)

Treasury bonds offer a relatively plain vanilla way to look at the impact of interest rate changes on bonds since they don’t have early redemption options that might affect the calculation.

Continue reading the full report (PDF)


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