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Basic Question 13 of 13
There are three sources of return on a fixed-rate bond. Interest rate risk affects ______.
II. reinvestment income
III. capital gains or losses if the bond is sold prior to maturity
I. receipts of promised coupon and principal payments
II. reinvestment income
III. capital gains or losses if the bond is sold prior to maturity
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I am using your study notes and I know of at least 5 other friends of mine who used it and passed the exam last Dec. Keep up your great work!
Barnes
Learning Outcome Statements
calculate and interpret the sources of return from investing in a fixed-rate bond;
CFA® 2024 Level I Curriculum, Volume 4, Module 10.