The risk that an investor will earn less than the quoted yield-to-maturity on a fixed-coupon...

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The risk that an investor will earn less than the quoted yield-to-maturity on a fixed-coupon bond due to a decrease in interest rates is known as: A) prepayment risk. B) event risk C) reinvestment risk. 6. If the volatility of interest rates increases, which of the following will experience the smallest price increase resulting from lower rates? A) Putable bond. B) Zero-coupon option-free bond. C) Callable bond

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