1 Higher Returns: Longer-term bonds often offer higher yields compared to short-term bonds, allowing investors to potentially earn more over time.
2 Predictable Income: Some investors may prefer the consistent interest payments that longer-term bonds provide, especially if they are relying on those payments for income.
3 Risk Management: Longer-term bonds can provide diversification to a portfolio by balancing out risk exposure to fluctuations in interest rates.
4 Locking in Rates: Investors may choose longer-term bonds to lock in current interest rates if they believe rates will fall in the future. - >QE and lower rate