Question: Which of the following financial assets would be most susceptible (vulnerable) to a decline in value if interest rates increased?
a. a short term fixed income financial asset (ex. short term bond)
b. a long term fixed income financial asset (ex. long term bond)
c. a long term variable interest rate income financial asset
d. they would all be approximately equally susceptible to a decline in value.
e. None of the above or insufficient information