7-77 The risk that a debt security's price will fall,subjecting the investor to a potential capital loss is

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The risk that a debt security's price will fall is known as market risk. This risk is related to general market conditions and affects all securities in the market, making it an unavoidable risk for investors. Market risk is different from credit risk, which is the risk of default by the issuer of the debt security, political risk, which is the risk of changes in government policies, currency risk, which is the risk of fluctuations in exchange rates, and liquidity risk, which is the risk of not being able to sell the security at a fair price due to lack of buyers or market conditions.

7-77 the Risk That a Debt Security's Price Will Fall,subjecting