Let's say you have 2 bonds with the same coupon rate, and the same yield to maturity at the moment. Both bonds have the same risk profile. One bond has a remaining tenor of 2 years. The other bond has remaining tenor of 4 years. Let's assume that you are a risk averse investor. Which bond would you invest in? Why?

Answer rating: 100% (QA)

As a riskaverse investor you would generally prefer investments that offer lower levels of risk or u... View the full answer