Which One of the Following Is the Risk That Market

question 82

Multiple Choice

Which one of the following is the risk that market interest rates may increase causing the price of a bond to decline?

• A)inflation risk
• B)reinvestment risk
• C)yield risk
• D)interest rate risk
• E)default risk

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Definitions:

Credit Bureau

A company that provides information about the creditworthiness of a person seeking credit.

Creditworthiness

A valuation or assessment of an individual's or organization's ability to repay debts or meet financial obligations.

Equal Credit Opportunity Act

A US federal law that prohibits discrimination by lenders against borrowers based on race, color, religion, national origin, sex, marital status, or age.

Class Action Lawsuit

A lawsuit in which one or more people sue a company or other legal entity that allegedly wronged all of them in the same way.