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Reinvestment risk of a bond is: 1 At maturity, the issuer will not repay the full principal amount 2. The risk that interest rates will
Reinvestment risk of a bond is:
1 At maturity, the issuer will not repay the full principal amount
2. The risk that interest rates will fall, and the bond's future cash flows will be reinvested at lower interest rates.
3. Market rates will rise, and future cash flows will be less valuable than current cash flows
4 None of the above
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