ayoismeisalex
ayoismeisalex
10.05.2021 • 
Business

Select the true statement about interest rate risk. It stems from the fact that bond prices and market interest rates are inversely correlated. It is the risk that a bond's coupon payment will fall if market interest rates fall. Interest rate risk is particularly problematic for investors who do not wish to sell their bonds. Shorter-term bonds are more sensitive to interest rate risk than longer-term bonds.

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