Interest-Rate Risk Results From

question 26

Multiple Choice

Interest-rate risk results from:

• A)Bond prices being fixed over the life of the bond
• B)A mismatch between an individual's investment horizon and a bond's maturity
• C)The fact that most people hold bonds until they mature
• D)Inflation being uncertain

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Definitions:

Note Payable

A written promise to pay a specific amount of money, usually including interest, by a certain date or upon demand.

Management Fees

Charges levied by managers of investment funds or other managed investment schemes for administering investment funds.

Comprehensive Income

The total change in equity for a reporting period other than from transactions with owners, encompassing all revenues, gains, expenses, and losses.

Equity Method

A method for accounting for investments where the investor recognizes its share of the profits and losses of the investee..