A fixed income security whose price has fallen as a result of an increase in interest rates

Question:

A fixed income security whose price has fallen as a result of an increase in interest rates in the market place is said to be subject to:

a. Interest rate risk.

b. Reinvestment rate risk.

c. Purchasing power risk.

d. Exchange rate risk.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For book-img-for-question

Fundamentals Of Financial Planning

ISBN: 9781936602094

3rd Edition

Authors: Michael A Dalton, Joseph Gillice

See More Books

Question Posted: Sep 12, 2024 07:02 AM

See More Questions

Write a SELECT statement that returns four columns from the Vitals table: Height in. Weight. Jh. Jempand Pulse. Then, run this statement to make sure it works correctly. Add an ORDER BY clause to...
Jared and Bess, married taxpayers, took out a mortgage on their home for $550,000 in 2002. In July of the current year, when the home has a fair market value of $700,000 and they owe $400,000 on the...
As an alternative to storing radioactive materials in oceanic waters, it is proposed that the system of Problem 3.62 be placed in a large tank for which the flow of water, and hence the convection...
A fixed income security whose price has fallen as a result of an increase in interest rates in the market place is said to be subject to: a. Interest rate risk. b. Reinvestment rate risk. c....
(Various Long-Term Liability Conceptual Issues) Schrempf Company has completed a number of transactions during 2010. In January the company purchased under contract a machine at a total price of...
The Harary graph H k , n is k - connected. Case 3 : , k = 2 r + 1 and n odd
Which of the following is/are characteristics of a municipal bond unit investment trust? 1. Additional securities are not added to the trust. 2. Shares may be sold at a premium or discount to net...
The type of risk which may be eliminated through diversification is: a. Market Risk. b. Purchasing Power Risk. c. Interest Rate. d. Business Risk.
Corrieten Company purchased equipment and the following costs were incurred: What amount should be recorded as the cost of the equipment? a. $\$ 24,000$. b. $\$ 25,200$. c. $\$ 25,400$. d. \(\$...
This module aims to teach you to break down many engineering or everyday life processes into smaller problems. Models can then be created based on conservation of mass, momentum and energy (heat)....
You are performing an earned value analysis (EVM) on your 28-week project. The project was scheduled to be 50% complete at this time. You have finished 14 of the 32 deliverables (all of equal value)....
13. Which stress value(s) will be nonzero at location J? A. Ozz B. Oyy X C. Ozz D. y E. Ozz F. Oyz X y A M Cross Section at A-A Y Z A B 0/1 points
Question on setting up supplier records(Q=115.F.M.CS.S.Q1) After you have finished setting up the supplier records for Hi-Fi Way, Edgar asks you to perform the following steps in MYOB and then...
Which forms of speculation or postponement is each of the following? (Explain in full) 1) A computer hardware company is producing parts of the computer and ship. them to market but only assemble...
Write an expression that describes the pressure variation as a function of position and time for a sinusoidal sound wave in air, if A # 0.100 m and Pmax = 0.200 N/m2.
Find the inverse, if it exists, for the matrix. -1
Should boards be held responsible for the results achieved by the organizations they governor is that primarily the responsibility of the CEO and staff?
Read The Effect of an Online Self-Assessment Tool on Nonprofit Board Performance by Harrison and Murray. (See Articles.) What types of governance issues did the respondents perceive as most...
Read The Effect of an Online Self-Assessment Tool on Nonprofit Board Performance by Harrison and Murray. What changes in governance behavior and practices were reported by the survey respondents...

A fixed income security whose price has fallen as a result of an increase in interest rates

Question:

Step by Step Answer:

Fundamentals Of Financial Planning

Students also viewed these Business questions