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Risk of fall in income due to fall in interest rates...

This question belongs to Commerce Financial Management
Financial Management
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Risk of fall in income due to fall in interest rates in future is classified as

Answer & Solution
Correct Answer: Option C
Risk of fall in income due to fall in interest rates in future is classified as reinvestment risk. Reinvestment risk is the probability that an investor will be unable to reinvest cash flows (e.g., coupon payments) at a rate comparable to the current investment's rate of return.
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