Because short-term interest rates are much more volatile than long-term rates,you would,in the real world,be subject to much more interest rate price risk if you purchased a 30-day bond than if you bought a 30-year bond.

Question

Quizplus · Accepted Answer

Long-term bonds are generally more sensitive to interest rate changes than short-term bonds, meaning that their prices are more volatile in response to interest rate fluctuations.

Because Short-Term Interest Rates Are Much More Volatile Than Long-Term