Question

What are the benefits of a long-term bond over a short-term bond?

Answer 1

Its c---------------------------------------

has grater risks but a greater return

Answer 2

A longer-term bond carries greater risk that higher inflation could reduce the value of payments, as well as greater risk that higher overall interest rates could cause the bond's price to fall. Bonds with maturities of one to 10 years are sufficient for most long-term investors.