The Interest-Rate Risk of a Bond Is

question 59

Multiple Choice

The interest-rate risk of a bond is

• A) the risk related to the possibility of bankruptcy of the bond's issuer.
• B) the risk that arises from the uncertainty of the bond's return caused by changes in interest rates.
• C) the unsystematic risk caused by factors unique in the bond.
• D) the risk related to the possibility of bankruptcy of the bond's issuer, and the risk that arises from the uncertainty of the bond's return caused by changes in interest rates.
• E) All of the options are correct.

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Definitions:

Conversational Tone

A style of writing or speaking that is informal, friendly, and similar to everyday spoken language.

Personal Phrases

Expressions or idioms that are characteristic of or used by a particular person.

Personal Pronouns

Personal pronouns are words used to replace the names of people or entities, typically indicating a specific person or group from the perspective of the speaker or writer (e.g., I, you, he, she, it, we, they).

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