Two Factors That Affect Interest Rate Risk Are

question 48

Multiple Choice

Two factors that affect interest rate risk are

• A) default risk and reinvestment risk.
• B) liquidity risk and reinvestment risk.
• C) price risk and political risk.
• D) price risk and reinvestment risk.

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Definitions:

Destinations

Destinations refer to the end points or locations where goods, services, information, or people are aimed to reach.

Routes

The paths or courses taken to get from one place to another, often used in the context of transportation or logistics.

Optimal Solution

The best possible solution or outcome that meets all constraints and maximizes or minimizes the objective function in a given mathematical model or problem.

Origins

The starting point, cause, or source of something.