The Riskiness of an Asset's Return That Results from Interest

question 57

Multiple Choice

The riskiness of an asset's return that results from interest rate changes is called

• A) interest-rate risk.
• B) coupon-rate risk.
• C) reinvestment risk.
• D) yield-to-maturity risk.

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Definitions:

Religion

A system of beliefs and practices related to sacred things that unite followers into a single moral community.

Natural Laws

Ethical theories suggesting that there are universal moral principles inherent in nature and human reason.

Human Behavior

The range of actions and mannerisms exhibited by humans in conjunction with their environment, responding to various stimuli or inputs.

Moral Absolutes

Ethical beliefs that actions are intrinsically right or wrong, irrespective of the context or consequences.