Unit 9 DB AMU Questions
Question Description
Help me study for my Finance class. I’m stuck and don’t understand.
When you have a fixed investment horizon, it is important to maximize your earnings. You must understand the risks and returns of the security and the risk factors that can affect the price of the bond.
If an investor has a fixed investment horizon, what type of security can be used to minimize both the price risk and the reinvestment risk? Does this security protect the real payoff? Explain.
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