The risk that income from a bond portfolio will vary because cash flows must be reinvested at current market rates is called:

A. interest rate price risk.
B. market yield risk.
C. interest rate reinvestment risk.
D. capital gain yield risk.
E. yield to maturity risk.


Answer: C

Business

You might also like to view...

Almost every revenue or expense account on the income statement has one or more related accounts on the balance sheet

Indicate whether the statement is true or false

Business

What mode of transport should Kimberly use to ship its goods over long distances as quickly as possible?

A) flatcars B) water transport C) air transport D) trucks E) railroads

Business

The ____ composes the majority of an RFP

a. requirements statement b. performance statement c. design statement d. specifications statement

Business

By number of cargo containers, what is the largest US export to China?

a. Automobilles b. Coal c. Grain d. Scrap

Business