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Your friend tells you that she bought a 10-year to maturity discount bond that she plans to hold until maturity to finance her daughter's university
Your friend tells you that she bought a 10-year to maturity discount bond that she plans to hold until maturity to finance her daughter's university education. She also says that she is worried that due to interest-rate-risk, she may suffer significant capital losses if interest rates increase. Are her fears justified?
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