- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 10. Interest Rate Risk and Return
- Subject 1. Sources of Return
CFA Practice Question
There are three sources of return on a fixed-rate bond. Interest rate risk affects ______.
II. reinvestment income
III. capital gains or losses if the bond is sold prior to maturity
I. receipts of promised coupon and principal payments
II. reinvestment income
III. capital gains or losses if the bond is sold prior to maturity
Correct Answer: II and III
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