Market volatility as a component of interest-rate risk:

Question

Quizplus · Accepted Answer

Market volatility can affect the value of a fixed-interest investment if it is sold before maturity. However, it generally does not affect the amount of interest payments received on a fixed-interest investment or the value of the investment at its maturity date. These factors are primarily influenced by the specific terms of the investment and prevailing interest rates. Therefore, options A and B are not accurate. Option D is incorrect because only option C is the correct answer.

Market Volatility as a Component of Interest-Rate Risk