yield curve goes up=choose longer duration bond to capitalize?

can someone explain this to me?thx!

what is it that you want explained? all the questions you seem to be asking are talking about duration, yield, price as three separate questions or items of interest in multiple topics you have posted. Try to look at them together - as to how Price is a function of yield and Duration is a First level measure of Price’s sensitivity to yield.

Change in Price of Bond = -1 * Duration * Change in Yield. (-1 to indicate yield goes up price goes down)

So if the Duration of the Bond is longer - when Yield goes up (Change in Yield is POSITIVE) - the fall in price of bond would be smaller.

oh ye i forgot about that, so if your duration is longer, the change of price of bond is longer the fall in price of bond should be bigger i think?

don’t you want to own bonds with higher duration when the yield curve goes down, not up?

Thought you would want shorter duration if yield curve is shifting up…?

Yield curve is relationship between YTM and time: when yield curve is steeping up, implies longer duration fetches more yield. Hence we long higher duration bonds. Also bonds duration increase (sensitivity increses) as time to maturity increases.

I get the more sensitivity part but if your yield goes up your bond price goes down. No? You should short the bond?

now think about it, the yield curve go up, your initial yield is lower?

Assuming a parallel shift in the yc, if the yc is shifting up you would target shorter duration bonds (minimize price depreciation) and vice versa.

the curriculum says longer hence i am confused

Also confused…maybe the text is referring to purchasing a bond if the YC is upward sloping in general (not considering any shift in the YC happening)

Which is different from the question of what type of bond you should own if the yield curve is actually shifting?

Any clarification would be much appreciated.