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Natalie Smith is considering investing in 30-year corporate bonds issued by Duke Energy Company. She knows that she will earn an interest rate of 6%

Natalie Smith is considering investing in 30-year corporate bonds issued by Duke Energy Company. She knows that she will earn an interest rate of 6% by purchasing these bonds. However, she is concerned because she might need to take her money out of this investment in a year, and she has heard that she might have to sell the bonds at a significantly lower price than she will purchase them for. What type of risk is Natalie concerned about?

Question 1 options:

A)

Liquidity risk

B)

Inflation risk

C)

Interest rate risk

D)

Personal risk

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