Buying a Bond with a Duration Equal to When the Funds

question 56

Multiple Choice

Buying a bond with a duration equal to when the funds are needed

• A)reduces reinvestment rate risk
• B)increases impact of higher interest rates
• C)reduces the impact of default
• D)increases the bond's yield

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Definitions:

Reinforced Behavior

Behavior that is strengthened or made more likely to occur in the future due to the consequence of a reinforcement.

Different Situation

refers to a divergent or distinct condition, circumstance, or context from what is considered normal or usual.

Primary Reinforcer

A stimulus that is naturally rewarding and satisfying, and requires no learning to become desirable, such as food or water.

Innately Satisfying

Actions or objects that are inherently pleasurable and do not require learning to be enjoyed.