Why Are Long-Term Bonds More Risky Than Short-Term Bonds

question 47

Short Answer

Why are long-term bonds more risky than short-term bonds?

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Definitions:

Contract

A legally binding agreement between two or more parties that outlines obligations and rights of those parties.

Impliedly Warrants

Indicates that a warranty is given by implication, rather than expressly stated, based on the circumstances or nature of a transaction.

Authority

The power or right to give orders, make decisions, and enforce obedience.

Liable

Being legally responsible for something, typically referring to the obligation to compensate for loss or damage.