Bond ratings are based on the probability of default risk, which is the risk that Blank$\_\_\_\_\_\_.$

Multiple choice question.

inflation may increase in the short term

the bond's interest rates may change unexpectedly

the bond's issuer may not be able to make all the required payments

the bond's maturity may changeexempt from federal taxes.

The interest on municipal bonds is$,$ in some cases, exempt from state taxes in the state of issue.