Which factors influence the reinvestment risk associated

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Problem 1: Which of the following factors influence the reinvestment risk associated with a bond?

A.The market interest rate.

B.The maturity of the bond.

C.The interest rate of the bond.

D.All of these answers.

Problem 2: An annuity has an interest rate of 7% and makes a quarterly payment of $2000. The annuity is to last for 5 years. What is the present value of the annuity.

A.$32,801.58

B.$8,200.40

C.$2,118.80

D.$21,188.03

Reference no: EM132869366

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