Self-Test In Schweser says: With rising interest rates, purchase short-duration bonds and sell long-duration bonds.
Why is this? Won’t the short duration prices fall at a lower rate than long duration bonds, and therefore you should purchase the long duration bonds (buy low) and sell the short duration bonds (sell high)?
You already answered in your 2nd sentence. Short duration bonds fall at a lower rate than long duration bonds - it means long duration bonds will fall heavily in price…therefore sell now. Short duration helps because it matures faster and you can re-invest at a higher rate when interest rates are rising.