Respuesta :
The majority of the bonds in the investor's portfolio are due to mature, and as interest rates have been falling, this will compel the investor to look for new bonds with lower yields. This investor is going through Risk of reinvestment.
What is an Investor?
Any person or other organisation (such as a company or mutual fund) who invests money in the hopes of making a profit is referred to as an investor. A person invests their money in the anticipation of making a profit or gaining an advantage down the road.. The majority of the time, the investor purchases some kind of property using this assigned funds.
What is the role of an investor and how do investors make money?
Investors are the market participants that the general public most usually links to the stock market. Investors are those who purchase shares of a company with the purpose of holding them for a long period because they believe the firm will prosper in the future.
Some have the potential to appreciate in value while others produce income through dividend or interest payments. There are still a few, nevertheless, that offer tax advantages in addition to current income or capital gains. The sum of these elements makes up an investment's overall return.
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