?The current market interest rate declines from 10 percent to 8 percent. Due to interest rate reinvestment risk, the bondholders will:
A. ?receive a lower market value for the bond.
B. receive a higher principal at the maturity of the bond.?
C. ?call back the bond before its maturity.
D. ?earn a lower return on the reinvested cash flows.
E. ?receive a lower coupon interest than mentioned in the bond indenture.
Answer: D
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