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Eric Juarez is retiring soon, so he is concerned about his investments providing him steady income every year. He is aware that if interest rates
Eric Juarez is retiring soon, so he is concerned about his investments providing him steady income every year. He is aware that if interest rates
the potential earnings power of the cash flow from his investments will increase. In particular, he is concerned that a decline in
interest rates might lead to
annual income from his investments. What kind of risk is Eric most concerned about protecting against?
Interest rate price risk
Interest rate reinvestment risk
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