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Which of the following sources of return is most likely exposed to interest rate risk for an investor who purchases a bond and quickly resells
Which of the following sources of return is most likely exposed to interest rate risk for an investor who purchases a bond and quickly resells it the next day?
A. Reinvestment of coupon payments
B. Capital Gain or Loss
C. Redemption of principal
D. Coupon payments
Please explain why you selected your answer.
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