Changes in yield-to-maturity (YTM) produce market price risk and reinvestment risk. A __________ in yield-to-maturity (YTM) increases a bond’s price and __________ its reinvestment risk.
Changes in yield-to-maturity (YTM) produce market price risk and reinvestment risk. A __________ in yield-to-maturity (YTM) increases a bond’s price and __________ its reinvestment risk.
Chapter4: Time Value Of Money
Section4.6: Perpetuities
Problem 2ST
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Changes in yield-to-maturity (YTM) produce market price risk and reinvestment risk. A __________ in yield-to-maturity (YTM) increases a
A.
decrease / decrease
B.
decrease / increase
C.
increase / increase
D.
increase / decrease
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