Q541
Reinvestment risk of bonds is higher on
A.
short maturity bonds
AnswerB.
high maturity bonds
C.
high premium bonds
D.
high inflated bonds
Answer: Option A
Solution
Answer: Option A
Solution:
Reinvestment risk of bonds is higher on short maturity bonds. Short-term bond funds are mutual funds that invest in bonds with a maturity period less than 5 years.