Matching a bond's duration with the time the funds are needed reduces reinvestment risk.
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Q35: The concept of duration stresses when a
Q36: The smaller the duration, the more volatile
Q37: A conservative investor will prefer a bond
Q38: The prices of twenty-year bonds tend to
Q39: If a 7 percent, $1,000 bond matures
Q41: The current yield on a long-term bond
Q42: The concept of duration considers
A)the timing of
Q43: The yield to call
A)is important if interest
Q44: A high-yield bond has the following terms:
Q45: Preferred stock and long-term bonds are similar
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