The risk associated with NOT being able to sell bonds quickly without loss of principal is called:
A) credit risk
B) call risk
C) marketability risk
D) portfolio risk

Question

Quizplus · Accepted Answer

Marketability risk, also known as liquidity risk, refers to the risk associated with not being able to sell an investment quickly without a significant loss in value. This is particularly relevant for bonds, where the ability to sell quickly without a substantial loss of principal is crucial for investors seeking flexibility or needing to respond to changing market conditions.

The Risk Associated with NOT Being Able to Sell Bonds