Multiple Choice
The two components of interest-rate risk are
A) price risk and default risk.
B) reinvestment risk and systematic risk.
C) call risk and price risk.
D) price risk and reinvestment risk.
E) None of the options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q1: Which of the following are false about
Q2: Holding other factors constant, the interest-rate risk
Q4: Interest-rate risk is important to<br>A) active bond
Q5: Consider a bond selling at par with
Q6: The "modified duration" used by practitioners is
Q7: Duration<br>A) assesses the time element of bonds
Q8: A 7%, 14-year bond has a yield
Q9: When interest rates decline, the duration of
Q10: The duration of a 5-year zero-coupon bond
Q11: Given the time to maturity, the duration