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12 February, 04:36

Uncertainty about interest-rate movements and returns is called Question 3 options: A) market potential. B) interest-rate irregularities. C) interest-rate risk. D) financial creativity.

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  1. 12 February, 06:09
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    The correct answer is letter "C": interest-rate risk.

    Explanation:

    Interest-rate risk is the threat that already owned investments will lose market value if new investments with higher interest rates come onto the market. It has a more direct effect on the value of bonds than stocks and is a major risk to all bondholders. Bond prices decrease and the interest rate increases and when bond prices increase it is because interest rate decreased.
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