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need help with these 2 You decide to invest in bonds that offer a relatively high rate of return and risk. Which type(s) of bonds
need help with these 2
You decide to invest in bonds that offer a relatively high rate of return and risk. Which type(s) of bonds are you most likely to buy? O Municipal bonds O Corporate bonds O AAA rated debentures O Treasury securities Reinvestment risk is the risk that, as interest rates drop: O Bond prices rise and the investor may realize a capital gain. O An investor may suffer an increase in fixed income derived from the bond's coupon payments. O An investor may suffer a decline in income derived from the bond's coupon payments. O Bond prices decline and the investor may suffer a capital loss Step by Step Solution
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