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What are the factors when deciding which bonds to invest in?
Answered By Editor
Duration is an essential factor when choosing
the right bond to invest in. It entails the
time which an investor can get recover his
investment. It is computed by dividing the
existing value of the time-weighted average
cash flows by the bond price.
Risk is the second important factor that
you need to keep in mind. Be sure that you
are able to gauge the surrounding factors
that will affect your investment before
investing your money in the business.
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