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17 May, 22:36

Which of the following is the risk that changes in market rates will affect the value of a bond? A. Default riskB. Reinvestment riskC. Prepayment riskD. Interest rate riskE. Systematic risk

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  1. 18 May, 01:35
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    Answer: D. Interest rate risk

    Explanation: An interest rate risk is a possibility that rates may go up and down in relation to different values of securities/bonds. Since interest rates change and fluctuate, they are known as risks to those who take out bonds with flexible interest rates.
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Home » Business » Which of the following is the risk that changes in market rates will affect the value of a bond? A. Default riskB. Reinvestment riskC. Prepayment riskD. Interest rate riskE. Systematic risk
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