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Mathematics, 29.05.2020 02:05 montgomerykarloxc24x
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Investment Risks and Returns: Mastery Test
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Select the correct answer.
Rico invested a lot of money in long-term bonds. Since he plans to wait for the bonds mature, his friends have warned him that there may be a
reinvestment risk involved. Which statement most accurately describes the reinvestment risk that Rico faces?
OA After maturity, the new bonds available may not offer the same rewards.
OB Before maturity, the value of the bonds may decrease a lot.
Oc By the time the bonds mature the demand for investments may have fallen
OD. By the time the bonds mature, new bonds may become more valuable.
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