Examlex
Which of the following is an example of a commitment?
Interest-Rate Risk
The potential for investment losses that result from a change in interest rates, affecting the value of fixed-income securities inversely.
Yield To Maturity
The total return anticipated on a bond if the bond is held until its maturation date, accounting for interest payments and the difference between purchase price and par value.
Coupon Bond
A type of bond that pays the holder a fixed interest rate (coupon) over its lifetime, and the principal is repaid at maturity.
Interest-Rate Risk
The potential for investment losses due to fluctuations in interest rates.
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