Question: i know it isnt the last two, thanks! When the investor's investment horizon is greater than the Macaulay duration of the coupon bond she owns:
i know it isnt the last two,
thanks!
When the investor's investment horizon is greater than the Macaulay duration of the coupon bond she owns: Reinvestment risk dominates and the investor is at risk of lower rates. Reinvestment risk dominates and the investor is at risk of higher rates. Market price risk dominates and the investor is at risk of higher rates. Market price risk dominates and the investor is at risk of lower rates
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