President Biden's policies have caused inflation to rise significantly, which will raise interest rates. Which of these types of bonds will see the greatest price swings due to rising rates? a) large coupon and long maturity b) large coupon and short maturity c) small coupon and long maturity d) small coupon and short maturity
Added by Kevin G.
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When interest rates rise, bond prices generally fall. This inverse relationship is a fundamental principle of bond investing. Show more…
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