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Reinvestment rate risk is of importance to bond purchasers because ____. the value of their bonds can increase the interest proceeds from the current bond

"Reinvestment rate risk" is of importance to bond purchasers because ____.

the value of their bonds can increase

the interest proceeds from the current bond may be reinvested at a lower interest rate than that of the current bond.

Both of the above are true.

Neither of the above are true.

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