What Is The Relationship Between Interest Rate Risk And The Time To Maturity?

What Is The Relationship Between Interest Rate Risk And The Time To Maturity? Maturity can also affect interest rate risk. The longer the bond’s maturity, the greater the risk that the bond’s value could be impacted by changing interest rates prior to maturity, which may have a negative effect on the price of the bond.

Do Short Term Or Long Term Loans Have Higher Interest Rates?

Do Short Term Or Long Term Loans Have Higher Interest Rates? Do short term or long term loans have higher interest rates? Shorter loan terms typically mean higher monthly mortgage payments, but often have lower interest rates. And if you pay off your mortgage balance within a shorter term, you may pay less in interest