Question
The riskiness of an asset's return that results from interest rate changes is called [A] . The risk that a bond's future coupon payments may
The riskiness of an asset's return that results from interest rate changes is called [A]. The risk that a bond's future coupon payments may have to be invested at a rate lower than the bond's yield to maturity is called [B]. The average lifetime of a debt security's stream of payments is called [C]_. If an investor's holding period is longer than the term to maturity of a bond, he or she is exposed to [D]. The change in the bond's price relative to the initial purchase price is[E]. ( fill the blanks from the following: reinvestment risk; duration, interest rate risk; capital gain yield; current yield )
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