So
much less interest rate risk and still get 90 % of the return of LT treasuries.
Not exact matches
By diversifying into CDs, at least part of my money is earning a
much higher
interest rate than my money market funds, and is subject to
less risk than my bond funds.
Because the
risk is lessened, the
interest rates that you are likely to pay on a credit builder loan are
much less than you would pay on a normal unsecured personal loan.
So short term bonds have
less interest rate risk, but offer
much lower yields.
Short - term bonds have
much less interest -
rate risk than long - term bonds.
The advantages of an amortization loan is that there is
much less of a credit
risk and there is also
much less of an
interest rate risk because the loan is paid quicker so there is
less effect from the
interest rate.