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Please match each of the following terms to the description of best fit. Risk associated with price fluctuations caused by interest rate changes This is
Please match each of the following terms to the description of best fit. Risk associated with price fluctuations caused by interest rate changes This is the risk that a firm's cost of debt Interest Rate Risk will fall and as a result reinvested B. coupon payments will earn less yield Reinvestment Rate Risk moving forward. Default Risk Risk that the Borrower will not make c. payments on time or in full Floating rate bond Coupon Payments typically follow a Zero Coupon Bond benchmark market rate Consol Bond All of the yield is determined by the E. difference in the price of the bond and the par value Can be assessed using the perpetuity formula F
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