A savvy investor paid $7,500 for a 20-year 510,000 mortgage bond that had a bond nterest rate of 10% per year, payable quarterly. Three years after he purchased he bond, market interest rates went down

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Risk Management Techniques

Risk management is the procedure of recognizing, analyzing, monitoring, and preventing the risks and threatening factors of investments and business. Risks can arise from various factors including internal controls, market changes, natural disasters, and failure in productions. Risk management techniques enable entities to control and minimize the risks as well as the threatening factors of the business and it also helps to improve the business.