The most susceptible bonds to interest rate fluctuations are those with a long maturity
This is because they have a longer time until maturity, which means that their cash flows are exposed to interest rate fluctuations for a longer period of time
As interest rates rise, the value of a long-term bond will decrease more than that of a short-term bond
On the other hand, if interest rates fall, the value of a long-term bond will increase more than that of a short-term bond
Therefore, investors who are concerned about interest rate risk may prefer to invest in shorter-term bonds or bond funds
Low-quality bonds, also known as high-yield or junk bonds, are more sensitive to changes in interest rates than high-quality bonds
This is because low-quality bonds are issued by companies with a higher risk of default
As interest rates rise, the risk of default increases, which causes the value of low-quality bonds to fall more than that of high-quality bonds