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An effect of interest rate risk and investment risk on a...

This question belongs to Commerce Financial Management
Financial Management
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An effect of interest rate risk and investment risk on a bond's yield is classified as

Answer & Solution
Correct Answer: Option C
An effect of interest rate risk and investment risk on a bond's yield is classified as maturity risk premium. A maturity risk premium is the amount of extra return you'll see on your investment by purchasing a bond with a longer maturity date.
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