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Matching Group of answer choices A bond that's trading at a premium [ Choose ] Reinvestment risk Interest rates fell below coupon rate Price risk

Matching

Group of answer choices

A bond that's trading at a premium

[ Choose ] Reinvestment risk Interest rates fell below coupon rate Price risk Interest rates rose above coupon rate

A bond that's trading at a discount

[ Choose ] Reinvestment risk Interest rates fell below coupon rate Price risk Interest rates rose above coupon rate

The concern that rd will fall, and future CFs will have to be reinvested at lower rates, hence reducing income

[ Choose ] Reinvestment risk Interest rates fell below coupon rate Price risk Interest rates rose above coupon rate

The concern that rising rd will cause the value of a bond to fall

[ Choose ] Reinvestment risk Interest rates fell below coupon rate Price risk Interest rates rose above coupon rate

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