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Question
Which of the following is true of interest-rate risk?A. It is the risk that the coupon rate for a bond will change, affecting current bondholders' coupon payments.
B. It refers to the probability that a borrower will default on debt obligations.
C. It is the risk that the face value of a bond will change before maturity.
D. Individuals owning long-term bonds are exposed to greater interest-rate risk.
Answer
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Related questions
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