A bond's price declines from par value to $950 due to a change in interest rates.All other things equal,this a good example of which of the following?

Question

Quizplus · Accepted Answer

A decline in a bond's price due to a change in interest rates is an example of interest rate risk. Interest rate risk is the risk that an investor will suffer losses due to changes in interest rates. When interest rates rise, existing bond prices will fall, and when interest rates fall, existing bond prices will rise.

A Bond's Price Declines from Par Value to $950 Due