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Ahmad as a financial advisor has given you the following advice

Economics

Ahmad as a financial advisor has given you the following advice. “Long term bonds are the greatest investment because their interest rate is over 20%”. Is Ahmad, necessarily right? Justify your answer. Note: Your answers should be detailed with proper references.

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No. It isn't true always.

On the off chance that loan costs rise or forcefully or interest rate increases sharply ater on, long terms bonds may endure such a sharp fall in value or price that their return may be very low, perhaps even negative.

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