For long-term U.S. government bonds, which risk concerns investors the most? Select one: a. Liquidity risk...

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Question

For long-term U.S. government bonds, which risk concerns investors the most? Select one: a. Liquidity risk...

For long-term U.S. government bonds, which risk concerns investors the most?

Select one:

a. Liquidity risk

b. Interest rate risk

c. Market risk

d. Default risk

business finance

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Answer 1

Answer #1

Interest rate risk

For longer term government bonds interest rate risk is important because large change in interest rate will affect bond price.

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Answer 2

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For long-term U.S. government bonds, which risk concerns investors the most? Select one: a. Liquidity risk...