Interest rate risk is greater for long-term bonds than for short-term bonds.

Name: Interest rate risk is greater for long-term bonds than for short-term bonds.
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Question

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Long-term bonds have a longer duration and are thus more sensitive to changes in interest rates. This means that the price of long-term bonds will be more affected by fluctuations in interest rates compared to short-term bonds. Therefore, the interest rate risk is greater for long-term bonds than for short-term bonds.

Interest Rate Risk Is Greater for Long-Term Bonds Than for Short-Term