1. An investor with an investment horizon of 5 years invests in a bond with a Macaulay duration of 10 years and interest rates rise dramatically immediately after the bond is purchased. Reinvestment returns will be _____ and the bond’s price return will be _____ , with a net result of a horizon yield that is _____ than the bonds initial yield-to-maturity.
   1. 
      
   2. high, positive, higher
   3. 
      
   4. high, negative, higher
   5. 
      
   6. low, positive, higher
   7. 
      
   8. low, negative, higher
   9. 
      
   10. low, negative, lower

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