It shows interest rates for bonds maturing in 2027 with a yield about 0.20% higher than those maturing in 2017, and bonds maturing in 2037 have a lower interest rate than those maturing in 2027.
I’ll admit, I don’t understand this. Why do bonds which mature a decade later have lower interest rates? Shouldn’t they have higher interest rates because you’re taking on more risk? (The further out bonds mature, the higher the chance of an apocalypse or a huge runup in non-fixed instruments sometime during that period, right?)
I’ll admit, I don’t understand this. Why do bonds which mature a decade later have lower interest rates? Shouldn’t they have higher interest rates because you’re taking on more risk? (The further out bonds mature, the higher the chance of an apocalypse or a huge runup in non-fixed instruments sometime during that period, right?)