Which type of risk is most significant for bonds?

Question

Quizplus · Accepted Answer

Interest rate risk is the most significant for bonds as it reflects the potential changes in the bond's value due to fluctuations in interest rates. If interest rates increase, the value of a bond can decline as investors may seek higher yielding investments, and vice versa. Maturity risk, default risk, and reinvestment rate risk are also factors that can affect the value of a bond, but interest rate risk is generally considered to be the most significant.

Which Type of Risk Is Most Significant for Bonds