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If interest rates are expected to increase in the near future, you are better off holding onto a long-term bond. What is the correct answer.
If interest rates are expected to increase in the near future, you are better off holding onto a long-term bond. What is the correct answer. Please explain.
A. False: Long-term bonds are never a good investment when the economy is growing normally.
B. True: You'll gain more by owning long-term bonds when interest rates rise.
C. False: You should hold onto shorter term bonds that are less subject to prices falling if interest rates rise.
D. True: short-term bonds are a very bad idea.
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