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Price risk is the risk that: 1. the bonds in a dedicated portfolio will decrease in value in response to an increase in interest rates.
Price risk is the risk that:
1. | the bonds in a dedicated portfolio will decrease in value in response to an increase in interest rates. | |
2. | market prices will increase in value making bonds more expensive to purchase. | |
3. | the principal amount will not be paid in full. | |
4. | bond values will change in response to changes in inflation rates. | |
5. | interest payments will be reinvested at a lower rate than anticipated. |
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