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An investor has two choices: a) Investing in a five-year bond and hold it for five years b) Investing in a two-year bond and reinvesting
An investor has two choices: a) Investing in a five-year bond and hold it for five years
b) Investing in a two-year bond and reinvesting in a three year bond when it matures
If the investor opts for choice a), he/she eliminates the following risk/s:
Group of answer choices
price risk and currency risk
reinvestment risk and currency risk
interest rate risk and currency risk
reinvestment risk
None of the answers are correct
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