Multiple Choice
The risk that funds may have to be reinvested at a lower rate in the future is the _______________. It is generally _____________ than the ___________________.
A) reinvestment risk, less, liquidity premium.
B) liquidity risk, less, reinvestment premium.
C) reinvestment risk, more, liquidity premium.
D) liquidity premium, more, reinvestment risk.
Correct Answer:
Verified
Correct Answer:
Verified
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