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17.with respect to interest rate risk, which of the following statement is/are correct? (2 points) If short-term interest rates increase the required rate of return
17.with respect to interest rate risk, which of the following statement is/are correct? (2 points) If short-term interest rates increase the required rate of return on money market securities will increase and the prices of money market securities will increase. money market security values are sensitive to interest rate movements in the same direction money market securities are not as sensitive as bond values to interest rate movements. an increase in interest rate is not as harmful to a capital market security because it will mature soon anyway. and the investor can reinvest the proceeds at the prevailing rate at that time comparing with money market securities
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