In: Finance
Which of the following is a risk when owning bonds?
Select one:
a. all the answers are correct
b. b. price risk
c. c. reinvestment risk
d. a. default risk
e. answers a. and b. only are correct
All are the risks when owning the bond
price risk is the risk of price falling due to rise in
rates
reinvestment risk is the risk of reinvesting coupons received at
lower rate than expected
default risk is the risk of not getting promised cash flows