Your favorite uncle advises you to purchase long-term bonds because their interest rate is 10%. Should you follow his advice?
What will be an ideal response?
It depends on where you think interest rates are headed in the future. If you think interest rates will be going up, you should not follow your uncle's advice because you would then have to discount your bond if you needed to sell it before the maturity date. Long-term bonds have a greater interest-rate risk.
Economics
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A) harmonized around Mexican rules. B) harmonized around U.S. rules. C) harmonized around Canadian rules. D) harmonized around a combination of the rules in all three countries. E) not harmonized.
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What type of relationship does the law of demand demonstrate?
A) direct B) equilibrium C) inverse D) dynamic
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