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What does the bonds selling for high prices have to do with the safety of the bonds as an investment? Rising bond prices are the
What does the bonds selling for high prices have to do with the safety of the bonds as an investment?
Rising bond prices are the result of
interest rates. If interest rates were to switch directions in the future investors holding these longterm bonds would
incur capital losses
earn capital gains
This type of risk is called
default risk
interest rate risk
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