Sản phẩm & Rủi roCâu 48 / 398
An investor holds long-term bonds and worries that rising market interest rates will reduce their price. This concern describes:
a.Credit risk
b.Liquidity risk
c.Reinvestment risk
d.Interest-rate risk
Giải thích
Interest-rate risk is the danger that rising market rates will lower the price of existing fixed-rate bonds, and it is greatest for long-term bonds. Credit risk relates to default, liquidity risk to selling quickly, and reinvestment risk to reinvesting cash flows at lower rates.
Luyện miễn phí toàn bộ 398 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- The line between 'investment grade' and 'non-investment grade' (high-yield) bonds generally falls at:
- If a rating agency downgrades a company's bonds, the most likely immediate effect on those existing bonds is that their:
- Credit (default) risk refers to the possibility that:
- When interest rates fall, an investor who owns a callable bond faces the risk that the bond will be called and the proceeds must be reinvested at lower rates. This combined concern is BEST described as:
- An investor holding fixed-rate bonds during a period of rising inflation is MOST concerned about:
- An investor wants to sell a thinly traded municipal bond quickly but can only do so by accepting a much lower price. This difficulty illustrates:
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