CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

A buy-and-hold investor faces ______.
A. both coupon reinvestment risk and market price risk
B. coupon reinvestment risk but no market price risk
C. market price risk but no coupon reinvestment risk
Explanation: No matter how the market interest rates change, the bond holder will always get the full principal back (assuming no default).

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