________ risk is the possibility that a bond will lose value if interest rates rise.

Name: ________ risk is the possibility that a bond will lose value if interest rates rise.
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Question

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Interest rate risk is the possibility that a bond's value decreases if interest rates in the market increase. This happens because investors can earn higher yields from newer bonds that offer higher coupon rates, making previously issued bonds less attractive.

________ Risk Is the Possibility That a Bond Will Lose