When and how will the Fed raise rates?

Interest rates can't stay at these near zero levels forever and many people both on Wall Street and Main Street, have been paying attention to Janet Yellen's comments regarding when and how she plans to raise rates.  

If you do an Internet search on this topic, you can find a plethora of news, for example:

http://money.cnn.com/2015/04/13/news/economy/federal-reserve-janet-yellen-interest-rate/

http://www.nytimes.com/2015/03/28/business/yellen-says-fed-will-increase-rates-slowly.html?_r=0

http://www.cnbc.com/id/102541816

Understanding a bit about macroeconomics is crucial for investors and finance professionals.  When Yellen does begin raising rates, how do you think this will effect security valuation?  Specifically, what will happen to the price of bonds?  What do you think might happen to stocks?  What about real estate and other assets?  

Will higher interest rates encourage businesses to make investments?  Or will higher rates discourage investment and perhaps increase unemployment?

If you were an investment professional, what advice would you provide to your clients in a rising rate environment?