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You manage a pension fund. The fund must pay out $1 billion in exactly 7 years. You are currently invested in coupon- paying bonds that

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You manage a pension fund. The fund must pay out $1 billion in exactly 7 years. You are currently invested in coupon- paying bonds that have a maturity of 8 years and a duration of 6.5 years. Which risk(s), if any, are you taking and which (if both) are you taking more of? Choose the best answer. Select one: Both price risk and reinvestment risk, but more price risk Neither pric risk nor reinvestment risk Reinvestment risk only Price risk only Both price risk and reinvestment risk, but more reinvestment risk

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