Investors are particularly concerned by interest rate risk for long-term U.S. government bonds.
By investing in long-term U.S. government bonds, there is essentially no chance that your principal will be lost. The U.S. government can "print" money as needed to pay off existing debt obligations and has a stellar reputation for timely repayment.
Even US Treasury bonds are subject to interest rate risk. In general, how much a bond's price will fluctuate in response to changes in market interest rates depends on its maturity and coupon rate.
Investors who hold long-term bonds are more exposed to interest rate risk than those who hold short-term bonds.
Learn more about interest rate risk: https://brainly.com/question/29051555
#SPJ4
