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Author Question: Which statement regarding interest rate risk is true? (Read 45 times)

najmarocks25

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on: Aug 7, 2023
Which statement regarding interest rate risk is true?

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Short-term bonds have less interest rate price risk and less reinvestment rate risk than long-term bonds.


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If interest rates decrease, all bond prices will decrease, but the decrease will be greater for bonds that have less interest rate risk.


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Short-term bonds have less interest rate price risk but more reinvestment rate risk than long-term bonds.


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Relative to a coupon-bearing bond with the same maturity, a zero coupon bond has less interest rate price risk but more reinvestment rate risk.

Financial Management: Theory and Practice ¦ Brigham, Ehrhardt, Gessaroli, Nason ¦ 4th Edition
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Marked as best answer by najmarocks25 on Aug 7, 2023

marufp

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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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najmarocks25

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Reply 2 on: Aug 7, 2023
YES! Correct, THANKS for helping me on my review

bulacsom

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Reply 3 on: Yesterday
Great answer, keep it coming :)

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