Question

The riskiness of an asset's return that results from interest rate changes is called

Answer 1

i don't know I don't no

Answer 2

The riskiness of an asset's return which results from interest rate changes is called interest rate risk. Reinvestment risk is the risk that a bond’s future coupon payments may have to be invested at a rate lower than the bond’s yield to maturity. a bond’s future coupon payments may have to be invested at a rate lower than the bond’s yield to maturityWhich of the following are true for a coupon bond? When the coupon bond is priced at its face value,the yield to maturity equals the coupon rate.v. if markets were inefficient,investors could use available information ignored bythe market to earn abnormally high returns Federal Reserve independence is thought to Introduce longer-run considerations to monetary policymaking.The strongest argument for an independent Federal Reserve rests on the view that subjecting theFed to more political pressures would impart an inflationary bias to monetary policy10. Instrument independence means the central bank is free from political pressure regarding how it uses the tools of monetary policy. To decrease money supply, the Fed could increasethe reserve requirement ratio.