The interest rate risk of a bond is the:
A) risk related to the possibility of default by the bond's issuer.
B) risk that arises from the uncertainty of the bond's return, caused by the change in interest rates.
C) unsystematic risk caused by factors relating solely to the bond.
D) risk caused by foreign exchange changes.
Correct Answer:
Verified
Q1: Techniques to manage interest rate exposure include:
A)
Q2: In relation to interest rate risk,reinvestment rate
Q4: If a bond investor's holding period is
Q5: Large fluctuations in interest rates:
A) have led
Q6: Interest rate risk occurs when:
A) investors buy
Q7: When a change in interest rate influences
Q8: When there are pricing differentials between markets
Q9: According to the text,two forms of interest
Q10: Over the lifetime of a bond,the coupons
Q11: The sensitivity of future cash flows and
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