Consider Kamala, 25 years old, and Joe, 68 years old. Kamala wants to put some money aside for her retirement (in 45 years’ time), while Joe wants to invest his savings for 2 years to finance his dream trip to Japan. They are both considering investing in 10-year maturity bonds. Are they exposed to the same risk?

Answer rating: 100% (QA)

No they are not exposed to the same risk Kamala is investing for a longer period of time ... View the full answer