Investors may wish to hold bonds when interest rates are low with the hope of selling them when interest rates increase.

Name: Investors may wish to hold bonds when interest rates are low with the hope of selling them when interest rates increase.
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Question

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When interest rates increase, bond prices typically decrease, leading to potential losses for investors who sell bonds in such conditions. Investors usually prefer to hold bonds when interest rates are high and expected to decrease.

Investors May Wish to Hold Bonds When Interest Rates Are