What could you do to protect your bondportfolio against the following kinds of risk?a) risk of an increasing rateb) risk of inflation increasingc) risk of volatility in the markets

QUESTION:
What could you do to protect your bond portfolio against the following kinds of risk? a) Risk of
an increasing rate b) risk of inflation increasing c) risk of volatility in the markets
SOLUTION:
Bonds are generally considered as safe investment instrument with regular income in comparison
to stocks. But there are certain pitfalls or risk involved in holding the bonds. The risks faced by
bonds are reinvestment risk, call risk,...