Interest-Rate Risk Can Best Be Characterized as the Risk That

Multiple Choice

Interest-rate risk can best be characterized as the risk that

A) you could have earned a higher interest rate if you waited to purchase a bond.
B) fluctuations in the price of a financial asset in response to changes in market interest rates.
C) you could have gotten a lower interest rate if you waited to lock in a mortgage.
D) short-term interest rates may exceed long-term interest rates.