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Several years ago, Tina purchased a bond with a 1 0 year maturity date. The bond was issued by Seabrook Incorporated, an issuer that is
Several years ago, Tina purchased a bond with a year maturity date. The bond was issued by Seabrook Incorporated, an issuer that is not very well known. Tina would like to sell the bond and use the money to invest in a business opportunity. When she approaches her advisor about making the sale, she learns that there are not many buyers interested and she will likely get much less for the bond than she anticipated. Which type of risk is this? a credit risk b market risk c interest rate risk d liquidity risk
Several years ago, Tina purchased a bond with a year maturity date. The bond was issued by Seabrook Incorporated, an issuer that is not very well known. Tina would like to sell the bond and use the money to invest in a business opportunity. When she approaches her advisor about making the sale, she learns that there are not many buyers interested and she will likely get much less for the bond than she anticipated. Which type of risk is this?
a credit risk
b market risk
c interest rate risk
d liquidity risk
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