An investor owns bond portfolio with macaulay duration of 7


An investor owns a bond portfolio with a Macaulay duration of 7. The investor expects to retire in 7 years, at which time the investor will liquidate the bond portfolio. The investor:

A is currently hedged against interest rate risk.

B faces greater coupon reinvestment risk than market price risk.

C faces greater market price risk than coupon reinvestment risk.

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Financial Management: An investor owns bond portfolio with macaulay duration of 7
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