A bondholder may have paper losses as large as 30-40% or more at some point between the time of issue and redemption.

Question

Quizplus · Accepted Answer

Bond prices can be volatile and can fluctuate based on various factors such as changes in interest rates, credit ratings, and market conditions. Therefore, a bondholder may experience paper losses of 30-40% or more at some point between the time of issue and redemption.

A Bondholder May Have Paper Losses as Large as 30-40