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Bond Assignment | Professional Writing

Reinvestment Risk The risk that the bond will not make a required coupon payment. The risk of a decline in a bond’s price due to an increase in interest rates.

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The risk that can be reduced by increasing the maturity risk premium on a bond The risk that a decline in interest rates will lead to a decline in income from a bond portfolio The risk that a company will be unable to make the required payments on their debt obligations

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