How will inflation and rising interest rates over the next year affect those invested in 10-year...

How will inflation and rising interest rates over the next year affect those invested in 10-year U.S. Treasuries versus those invested in 30-year U.S. Treasuries, which investors would suffer larger losses,explain?

Expert Solution

Those investors which have a higher term to maturity on their bonds are always suffering from fluctuations in inflation and interest rate.

when there will be a higher time to maturity they will be more exposed to the risk of the interest rate change and fashion projection as their prices will be swinging more so 30 year treasury Bond will be suffering the larger losses.

jeff jeffy answered 2 years ago

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