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Which management style is appropriate during the forming stage?
Interest Rate Risk
The risk of loss to an investor from changes in the price of a bond that arise from changes in the market interest rate. Also called price risk and maturity risk.
Maturity Risk
Maturity risk pertains to the uncertainty and potential loss associated with holding a bond or other fixed-income investment until its maturity date.
Coupon
The percentage rate of interest a bond yields annually, based on its principal amount.
Current Yield
The annual return of an investment expressed as a percentage of its current price.
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