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.
Correct Answer:
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