The answers given above are correct, however, keep in mind that different bonds reach differently to a rise in interest rates.Do bond prices OR yields go up when interest rates go up?
What classifies as a long term bond? Obviously 30 year bonds? how about 20 year or 10 for that matter?But central bank does not control long term bond rates.
Long term rates are determined by the market expectation of the direction of rates, inflation estimates, etc.
Relatively, yes.Im guessing that a short term fund (XSB) would be a bit safer, as the duration of the bonds in the ETF are rolling over quicker, and adding new ones with more up to date interest rates. Would this be a fair assessment?