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Assume that you personally have an existing investment in a large amount of bonds in your brokerage account. All else equal, if interest rates rose
Assume that you personally have an existing investment in a large amount of bonds in your brokerage account. All else equal, if interest rates rose significantly higher, which one would you rather be already holding?
Short term bonds | ||
It doesn't matter because they will both respond the same way to the change in interest rates | ||
Long term bonds |
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