How Can Shorter Duration Protect your BondsSolutionDuration

How Can Shorter Duration Protect your Bonds?

Solution

Duration measures the change in price of the bond with a change in the interest rates. When we have shorter duration bonds, these bonds are less sensitive to movement in interest rates than longer duration bonds. In this way shorter duration bonds are more stable in a changing interet environment.

How Can Shorter Duration Protect your Bonds?SolutionDuration measures the change in price of the bond with a change in the interest rates. When we have shorter

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