Multiple Choice
All of the following are true regarding the interest rate risk EXCEPT
A) rising interest rates cause bond prices to rise as well.
B) all investors are subject to this risk.
C) changes in interest rate can affect both an investor's income stream and the value of the investor's assets.
D) rising interest rates cause bond prices to fall.
E) when interest rates rise, it is more expensive to borrow money.
Correct Answer:
Verified
Correct Answer:
Verified
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