Short-term investment horizon
Problem:
Assume that you have a short-term investment horizon (less 1 year). You are considering two investments: a 1-year Treasury security a 20-year treasury security. Which of the two investments would you view as being riskier? Explain.
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Assume that you have a short-term investment horizon (less 1 year). You are considering two investments:
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Values of outstanding bonds change whenever going rate of interest changes. In general, short-term interest rates are more volatile than long-term interest rate
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