Question
Uncle Robbie, who does not have a margin account, bought a Treasury bond on the secondary market that has 10 years until maturity and a
Uncle Robbie, who does not have a margin account, bought a Treasury bond on the secondary market that has 10 years until maturity and a 2% coupon payment, paid semi-annually. Which of the following risks is he subject to?
| Financial risk | ||
| Exchange rate risk | ||
| Default risk | ||
| Reinvestment rate risk |
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
