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    Fundamentals of Financial Management Study Set 1
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    Exam 6: Interest Rates
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    The Risk That Interest Rates Will Decline,and That Decline Will
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The Risk That Interest Rates Will Decline,and That Decline Will

Question 23

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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