(TRUE or FALSE?) The reinvestment risk of a bond happens when the market...
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Finance
(TRUE or FALSE?)
The reinvestment risk of a bond happens when the market rates change, we will be reinvesting the cash flows at a different rate than what we expected.
Because the value of a bond is the future value of its future cash flows, the value of a bond will decrease as the interest rate declines, and vice versa.
The value of a bond is the present value of its future cash flows.
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