Which of the following types of risk has the most effect on owners of fixed income...

Which of the following types of risk has the most effect on owners of fixed income securities?

A) market risk

B) business risk

C) interest rate risk

D) purchasing power risk

E) event risk

Expert Solution

Fixed income securities are the ones that provide a fixed periodic interest payment and A final principal payment at the end of the maturity. Interest payment depends upon the rate of interest and changes in the rate of interest affect the holders of the fixed income securities the most.

Select option C

Rahul Sunny answered 2 years ago

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