Bob expects to retire in a few years and his primary goal is to avoid major losses in his 401- K account. 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 and short maturities. High ratings indicate lower risk of default, and short maturities reduce interest rate risk, aligning with his goal to avoid major losses.

Bob Expects to Retire in a Few Years and His