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."

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Definitions:

Current Asset

An asset that is expected to be converted into cash, sold, or consumed within one year or within the operating cycle of the business, whichever is longer.