Discuss the conditions under which investors would prefer to hold short-term bonds and when they would...

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Finance

Discuss the conditions under which investors would prefer tohold short-term bonds and when they would prefer to hold long-termbonds. Find an Internet site that explains duration and howinvestors should utilize it in determining the appropriate bondinvesting strategy, given current interest rates and interest rateexpectations. Provide a link for your classmates.

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investment in Short term or Long term bonds depend upon following points 1Risk taking ability If a person wants to take higher risk then he should go for Long tern bonds as LTB carries higher risk Maturity period of bond affects bond price and interest rate because    See Answer
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Discuss the conditions under which investors would prefer tohold short-term bonds and when they would prefer to hold long-termbonds. Find an Internet site that explains duration and howinvestors should utilize it in determining the appropriate bondinvesting strategy, given current interest rates and interest rateexpectations. Provide a link for your classmates.

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