One Way of Eliminating Both Price Risk and Reinvestment Risk

question 28

Multiple Choice

One way of eliminating both price risk and reinvestment risk is to structure a bond investment so that the duration of the bond or the bond portfolio equals:

• A)the holding period.
• B)the maturity period.
• C)the duration period.
• D)price of the bond.

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Definitions:

Cultural Pluralism

The coexistence of diverse cultures in a society, where different cultural groups maintain their unique cultural identity.

Ethnic Groups

Communities or populations that share common cultural practices, ancestry, language, or other distinguishing characteristics.

Cultural Distinctiveness

The unique characteristics and qualities that differentiate one culture from another.

Cultural Influences

The impact that the shared beliefs, values, and practices of a society or group have on individuals' behaviors, perceptions, and interpretations.