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Liquidity risk is the risk that an investor may have to sell at a low price in a market without lots of buyers and sellers.

Liquidity risk is the risk that

an investor may have to sell at a low price in a market without lots of buyers and sellers.

a bond's future coupon payments may have to be invested at a rate lower than the bond's yield to maturity.

a bond's issuer may fail to make the future coupon payments and the investor will have no cash to reinvest.

a bond's value may fall in the future.

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