Definition 1.
Intermediate term bonds have a maturity roughly between seven and 15 years, although some people consider even five-year bonds to be intermediates. Intermediate term Treasury bonds are favorites of cautious investors because, historically, they have yielded almost as much as 30-year Treasuries, yet the shorter-term bonds fluctuate much less with changing interest rates. That is, when rates rise, the value of longer-term bonds falls more than that of shorter-term bonds. Intermediate term municipal bonds and intermediate bond mutual funds are also available.
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