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What are the benefits of a long-term bond over a short-term bond?

What are the benefits of a long-term bond over a short-term bond?
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3 votes
What are the benefits of a long-term bond over a short-term bond?

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User MBozic
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2 Answers

4 votes

Its c---------------------------------------

has grater risks but a greater return

answered
User MangooSaSa
by
8.4k points
4 votes
A longer-term bond carries greater risk that higher inflation could reduce the value of payments, as well as greater risk that higher overall interest rates could cause the bond's price to fall. Bonds with maturities of one to 10 years are sufficient for most long-term investors.
answered
User Aneesh Mohan
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