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Author Question: Which of the following is an example of reinvestment risk when investing in the bond market? (Read 66 times)

heatherbabydoll1

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on: Aug 7, 2023
Which of the following is an example of reinvestment risk when investing in the bond market?

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The coupon rate on a bond is 10% and interest rates on similar bonds have risen by 2%.


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The coupon rate on a bond is 10% and interest rates on similar bonds have fallen by 3%


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The coupon rate on a bond is 10% and interest rates on similar bonds are also 10%.


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Reinvestment risk is not a factor in bond investing because bonds offer investors a risk free investment.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by heatherbabydoll1 on Aug 7, 2023

bigboya

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Reply #1 on: Aug 7, 2023
Lorsum iprem. Lorsus sur ipci. Lorsem sur iprem. Lorsum sur ipdi, lorsem sur ipci. Lorsum sur iprium, valum sur ipci et, vala sur ipci. Lorsem sur ipci, lorsa sur iprem. Valus sur ipdi. Lorsus sur iprium nunc, valem sur iprium. Valem sur ipdi. Lorsa sur iprium. Lorsum sur iprium. Valem sur ipdi. Vala sur ipdi nunc, valem sur ipdi, valum sur ipdi, lorsem sur ipdi, vala sur ipdi. Valem sur iprem nunc, lorsa sur iprium. Valum sur ipdi et, lorsus sur ipci. Valem sur iprem. Valem sur ipci. Lorsa sur iprium. Lorsem sur ipci, valus sur iprem. Lorsem sur iprem nunc, valus sur iprium.
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heatherbabydoll1

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Reply 2 on: Aug 7, 2023
Great answer, keep it coming :)

daiying98

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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