Jillian has purchased AAA rated corporate bonds that will mature in 20 years . She plans to sell the bonds in 10 years as she approaches retirement age. The most significant risk she faces is

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The most significant risk that Jillian faces is maturity risk. This means that if interest rates rise before she sells the bonds in 10 years, the value of the bonds will decrease, since investors can buy newer bonds with higher yields. Therefore, Jillian may have to sell the bonds at a discount or hold them until maturity to avoid losses. Liquidity risk and default risk are also considerations when investing in bonds, but maturity risk is the biggest concern in Jillian's case. The bonds may be AAA rated, but they are not completely risk-free.

Jillian Has Purchased AAA Rated Corporate Bonds That Will Mature