Two primary risks associated with corporate and municipal bonds are

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The two primary risks associated with corporate and municipal bonds are default risk and interest-rate risk. Default risk is the risk that the debtor will default on its debt obligations and fail to make required interest or principal payments. Interest-rate risk is the risk that the value of the bond will decline as interest rates rise, leading to a decrease in the bond's price. While the other options may also represent risks associated with bonds, they are not the primary risks.

Two Primary Risks Associated with Corporate and Municipal Bonds Are