NO.PZ2023120801000068
问题如下：
When an investor’s investment horizon is less than a bond’s Macaulay duration, the investor faces downside risk if, after the purchase of the bond, interest rates:
选项：
A.decrease
increase
either decrease or increase
解释：
Correct Answer: B
If the investment horizon is less than the bond’s Macaulay duration, then the investor’s risk is higher interest rates. For such an investor, the market price risk dominates the coupon reinvestment risk.
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