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:

Collude

The act of cooperating or conspiring, especially in a secretive way, with others to deceive or defraud.

Cable TV Market

A segment of the media industry where companies provide television programs to consumers via coaxial or fiber-optic cables.

High Price

A term referring to goods or services being offered at a rate considered above the average or expected market value.

Sherman Antitrust Act

A landmark federal statute in the United States passed in 1890 that prohibits monopolistic business practices.