A Helpful Yardstick For Anxious InvestorsJeffrey M. Laderman
Investors know that risk in the bond market is directly related to maturity of the bonds. If rates go up, a 30-year bond is going to fall further than a three-year bond. That's because the 30-year bond will be paying a lower-than-market interest rate for a very long time, while the holder of the three-year bond will only have to suffer for a few more years.
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