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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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