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When considering the riskiness of a bond, a positive maturity risk premium implies that generally a . investors disregard the investment horizon when choosing between
When considering the riskiness of a bond, a positive maturity risk premium implies that generally
a investors disregard the investment horizon when choosing between longand shortterm bonds.
b reinvestment risk is a factor only professional investors can accurately predict.
c investors will choose a longterm bond over a shortterm bond.
d duration is irrelevant when calculating risk.
e investors regard longterm bonds as being riskier than shortterm bonds.
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