Examveda
Examveda

Reinvestment risk of bonds is higher on

A. short maturity bonds

B. high maturity bonds

C. high premium bonds

D. high inflated bonds

Answer: Option A

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

Join The Discussion

Related Questions on Financial Management

Investment is the _______________.

A. net additions made to the nation’s capital stocks

B. person’s commitment to buy a flat or house

C. employment of funds on assets to earn returns

D. employment of funds on goods and services that are used in production process