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:

Retirement Saving Plan

A financial arrangement designed to save money for retirement, often with tax advantages.

Income

Money received, especially on a regular basis, for work or through investments.

Deferred Annuity

An insurance contract that delays payments of income, installments or a lump sum until the investor elects to receive them.

Permanent Pension

A pension that is paid throughout the lifetime of the beneficiary, often until death.