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QUESTION
Which of the following explains the difference between price risk and reinvestment risk?Group of answer
Which of the following explains the difference between price risk and reinvestment risk?
Group of answer
choices
Price risk is positively correlated to maturity, reinvestment risk is inversely correlated.
For corporate planning, a bond's price risk is a bigger concern than its reinvestment risk.
All of these answers.
Price risk is positively correlated to interest rates, reinvestment risk is inversely correlated.
