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8. What is the interest rate (or price) risk? Which bond has more interest rate risk: a 1-year bond or a 10 -year bond? Why?

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8. What is the interest rate (or price) risk? Which bond has more interest rate risk: a 1-year bond or a 10 -year bond? Why? 9. What is reinvestment rate risk? Which bond has more reinvestment rate risk: a 1-year bond or a 10 -year bond? Why? 10. Briefly describe bankruptcy law. If a firm were to default on its bonds, would the company be liquidated immediately? Would the bondholders be assured of receiving all of their promised payments

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