Why the interest rate goes down when the maturity of a bond goes up?
Answers:
Because of the inverted yield curve. Investors are expecting rates on shorter term securities to go down.
Because the longer the maturity of the bond...there is more risk to the bondholder (interest rate risk, inflation, etc.). Therefore, typically longer-term bonds will pay out a higher interest rate than shorter-term bonds in order to reward those who take a greater risk.
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