If you expect market interest rates to rise, you should purchase
A) long term, low coupon bonds.
B) short term, low coupon bonds.
C) short term, high coupon bonds.
D) long term, high coupon bonds.

Question

Quizplus · Accepted Answer

Short term, high coupon bonds are less sensitive to interest rate changes and provide higher income, making them preferable when expecting rising rates.

If You Expect Market Interest Rates to Rise, You Should