Interest-rate or ______ risk is the uncertainty in the return on a fixed-income security caused by unanticipated fluctuations in the value of the asset owing to changes in interest rates.

Question

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Interest-rate or price risk refers to the risk that the value of a fixed-income security (such as bonds) will fluctuate due to changes in the interest rates. When interest rates rise, the prices of existing bonds typically fall, and vice versa.

Interest-Rate or ______ Risk Is the Uncertainty in the Return