Investing Talk

Bill B · Guest

I'm looking at some 10 year 5.5% brokered CDs from Charles Schwab and
wondering about the interest rate risk. The way I understand it is if
I buy a 10 year CD at say 5.5% and decide to sell it 2 years later
when the interest rates are higher at say 6.5% I will lose 1% for the
remaining 8 years, or maybe 8% total. That means a 10K CD will only be
worth $9200 when I sell.

Is that about right, or did I miss something?

-Bill