Even bond mutual funds with little or no default risk have an interest rate risk.

Name: Even bond mutual funds with little or no default risk have an interest rate risk.
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Question

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Even if a bond mutual fund invests in high-quality bonds with little or no default risk, it is still subject to interest rate risk. This means that if interest rates rise, the value of the bonds in the fund may decline, which can negatively impact the fund's performance.

Even Bond Mutual Funds with Little or No Default Risk