Which of the following is the risk that changes in market rates will affect the value of a bond?A. Default riskB. Reinvestment riskC. Prepayment riskD. Interest rate riskE. Systematic risk

Respuesta :

Answer: D. Interest rate risk

Explanation: An interest rate risk is a possibility that rates may go up and down in relation to different values of securities/bonds. Since interest rates change and fluctuate, they are known as risks to those who take out bonds with flexible interest rates.