If you are concerned that market interest rates may rise in the near and intermediate term, your bond investment strategy should be to

Question

Quizplus · Accepted Answer

Buying bonds with shorter term maturities is a strategy to minimize interest rate risk because shorter-term bonds are less sensitive to interest rate changes compared to longer-term bonds. When interest rates rise, the price of existing bonds typically falls, and bonds with shorter maturities are less affected by these price changes.

If You Are Concerned That Market Interest Rates May Rise