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5. (4 points) Today there was a significant amount of buying of Treasuries across the curve, leading to a significant decrease in Treasury yields. Unfortunately,

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5. (4 points) Today there was a significant amount of buying of Treasuries across the curve, leading to a significant decrease in Treasury yields. Unfortunately, the price of your 10-year corporate bond, which has a similar coupon rate to the 10-year Treasury, actually fell. Carefully explain a reason why this could have happened. 6. (4 points) Define both interest rate risk and reinvestment risk. Which risk matters more for traders with short investment horizons

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