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An increase in interest rates will help increase the future value of a portfolio because the cash flows produced by the portfolio: a. will increase the maturity value of the bond. b. will decrease the yield to maturity of the bond. c. can be used to recall high-rate bonds. d. can be reinvested at higher rates of return. e. will generate cash to pay future coupon interest.

Respuesta :

Answer:

d. can be reinvested at higher rates of return.

Explanation:

Option d. can be reinvested at higher rates of return.

The interest rates on the portfolio is the yield that a person receives on his investment. This yield he gets periodically, therefore amount received can be used to generate further yields by reinvesting it into higher interest paying investments.

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