The Risk That Interest Rates Will Decline,and That Decline Will

question 23

True/False

The risk that interest rates will decline,and that decline will lead to a decline in the income provided by a bond portfolio as interest and maturity payments are reinvested,is called "reinvestment rate risk."

---

Definitions:

Stroma

The supportive tissue of an epithelial organ, tumor, gonad, etc., consisting of connective tissues and blood vessels.

Photon

A quantum of electromagnetic energy, often viewed as a particle of light with no mass that exhibits both wave and particle properties.

Wavelength

The distance from one wave peak to the next; the energy of electromagnetic radiation is inversely proportional to its wavelength.

Photosynthesis

The method through which green plants and certain other organisms utilize sunlight to create nutrients from carbon dioxide and water.