The risk caused by variations in interest expense unrelated to sales or operating income arising from changes in the level of interest rates in the economy is called:

a. financial risk

b. business risk

c. interest rate risk

d. economic rate risk

Question

Social Studies

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9 August, 12:51

The risk caused by variations in interest expense unrelated to sales or operating income arising from changes in the level of interest rates in the economy is called:

a. financial risk

b. business risk

c. interest rate risk

d. economic rate risk

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Answers (1)

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Brenda Hayes · Answer 1

Interest rate risk

Explanation:

Interest rate risk is defined the chances of decrease in the value of product due to continuous change in the value of interest rate. if the interest rate is increasing then it will directly affect bind value.

It is take as a risk for owner of bond that arise due to interest rate. The sensitivity of this risk is depend upon the how fast is market fluctuate and maturity time of bonds.

The risk caused by variations in interest expense unrelated to sales or operating income arising from changes in the level of interest rates in the economy is called:a. financial riskb. business riskc. interest rate riskd. economic rate risk

The risk caused by variations in interest expense unrelated to sales or operating income arising from changes in the level of interest rates in the economy is called:

a. financial risk

b. business risk

c. interest rate risk

d. economic rate risk