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Differentiate between price risk and reinvestment risk

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Reference no: EM133024149

Question - Differentiate between price risk and reinvestment risk. To which type of risk are holders of long-term bonds more exposed? Short-term bondholders? What type of security can be used to minimize both the risks for an investor with a fixed horizon? Does this security protect the real payoff? Explain.

Reference no: EM133024149

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