Bob expects to retire in a few years and his primary goal is to avoid major losses. Which of the following bond characteristics should he be seeking?
I. Long maturities.
II. High ratings.
III. High yields.
IV. Short maturities.

Question

Quizplus · Accepted Answer

Bob should seek bonds with high ratings to minimize credit risk and short maturities to reduce interest rate risk, which aligns with his goal of avoiding major losses.

Bob Expects to Retire in a Few Years and His