Though Treasury Bonds May Have Little Default Risk,what Type of Risk

question 46

Multiple Choice

Though Treasury bonds may have little default risk,what type of risk exists when current interest rates are low?

• A) price risk
• B) refinancing risk
• C) interest-rate risk
• D) present value risk

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Definitions:

Separate Returns

Tax returns filed by married individuals choosing not to file a joint tax return with their spouse, often detailing their own income, deductions, and liabilities.

Multiple Support Agreement

An agreement where two or more individuals provide more than half of a person's support, but no single individual contributes over 50%, allowing them to take turns claiming the dependent on their taxes under certain conditions.

Forms 2120

A designation that may be an error or specific to a niche application; without context, it's unclear, treating as potential error so, NO.

Tax Return

The form filed with a tax authority that reports income, expenses, and other pertinent tax information. Taxes payable or refundable are also determined through this document.