Solved

The Interest-Rate Risk That Is Associated with Bond Investing

Question 82

Multiple Choice

The interest-rate risk that is associated with bond investing:


A) exists even if an investor plans on holding the bond to maturity.
B) arises because of a mismatch between the investor's investment horizon and the maturity of the bond.
C) is not reflected in the risk premium.
D) can be eliminated by holding only consols.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents