I pour the morning cup of mud, schlep out to the stoop to get my paper, and open my WSJ to learn that the yield curve is awfully flat (i.e., the difference between the interest rates
of bonds of different maturities is low).
Rather than selecting two particular maturities, one can also consider more broadly the overall shape of the yield curve, which plots the interest rates
on bonds of different maturities.
This risk can be reduced by having
bonds of different maturities (diversifying with short - term, medium - term, and long - term bonds) or by holding a bond till maturity.