The interest-rate risk of a bond is
A) the risk related to the possibility of bankruptcy of the bond's issuer.
B) the risk that arises from the uncertainty of the bond's return caused by changes in interest rates.
C) the unsystematic risk caused by factors unique in the bond.
D) the risk related to the possibility of bankruptcy of the bond's issuer and the risk that arises from the uncertainty of the bond's return caused by changes in interest rates.
E) All of the options
Correct Answer:
Verified
Q3: Which of the following is true?
A)Holding other
Q5: The "modified duration" used by practitioners is
Q6: The "modified duration" used by practitioners is
Q7: The duration of a 5-year zero-coupon bond
Q9: Which of the following two bonds is
Q10: Holding other factors constant, the interest-rate risk
Q11: Holding other factors constant, which one of
Q11: Holding other factors constant, the interest-rate risk
Q12: Ceteris paribus, the duration of a bond
Q13: Ceteris paribus, the duration of a bond
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents