Question: Q1. [10 points] The return obtained from a fixed income security from the day it is purchased to the day it is sold can be

 Q1. [10 points] The return obtained from a fixed income security

Q1. [10 points] The return obtained from a fixed income security from the day it is purchased to the day it is sold can be divided into two parts: (1) the market value of the security when it is eventually sold and (2) the cash-flows received from the security over the time period that it is held, plus any additional income from reinvestment of the cash-flow. Several risk factors may affect one or both of these two parts. Identify and discuss (briefly) each of these factors

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