Interest-rate risk is the riskiness of an asset's returns due to
A)interest-rate changes.
B)changes in the coupon rate.
C)default of the borrower.
D)changes in the asset's maturity.

Question

Quizplus · Accepted Answer

Interest-rate risk refers to the risk of a security's return changing due to changes in interest rates. This includes changes in the market interest rate, which can affect the yield on a bond or other fixed-income security. Changes in coupon rate, default risk, and maturity risk can all also affect the return on an asset, but these are not specifically related to interest-rate risk.

Interest-Rate Risk Is the Riskiness of an Asset's Returns Due