Bill,The easiest source on interest rate risk on bonds is Vanguard 's web site But basically a fund's NAV will drop (or gain) by the average duration of its bond holdings times the change in basis points of the equivalent bonds to those it holds. With the Total Bond Market fund, roughly speaking its NAV will drop 5% for each 100 basis point increase in 5 year treasuries (since its average duration is about 5%)—this is ball park, since it also holds corporate bonds.
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