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The Andover State Bank has purchased a corporate bond from the Tristate Manufacturing Company that has 1 5 years to maturity and has a coupon
The Andover State Bank has purchased a corporate bond from the Tristate Manufacturing Company that has years to maturity and has a coupon rate of Market interest rates have recently declined to and the Andover State Bank is worried that the Tristate Manufacturing Company will exercise its right to retire the bonds early, and issue new corporate bonds with a lower coupon rate. What type of risk is the Andover State Bank worried about?
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