An increase in interest rates will increase the future value of a portfolio because the...
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Accounting
An increase in interest rates will increase the future value of a portfolio because the cash flows produced by the portfolio:
Select one:
a. will increase the maturity value of the bond.
b. can be reinvested at higher rates of return.
c. can be used to recall high-rate bonds.
d. will generate cash to pay future coupon interest.
e. will decrease the yield to maturity of the bond.
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