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If an investor may have to sell a bond prior to maturity and interest rates have risen since the bond was purchased, the investor is exposed to

 

the coupon effect.

 

interest rate risk.

 

a perpetuity.

 

an indefinite maturity.

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Question added by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company
Date Posted: 2015/03/24
Alex Al Yazouri
by Alex Al Yazouri , General Manager , Al Mushref Cooperative Society

the investor is exposed to

interest rate risk.

Wasi Rahman Sheikh
by Wasi Rahman Sheikh , WAREHOUSE SUPERVISOR , AL MUTLAQ FURNITURE MFG

Answer is interest rate risk\\<<<<<<<<<<<<<<<<<<<<<

Agree with specialists---------2nd option

Mirza Danish Beg
by Mirza Danish Beg , Fixed Income Manager , Emirates Islamic Bank

Investor is exposed to interest rate/ market risk and bond would be sold at loss (mark-to-market loss)

Emad Mohammed said abdalla
by Emad Mohammed said abdalla , ERP & IT Software, operation general manager . , AL DOHA Company

>>>>>>>>>>>>>> interest rate risk.

 

Mir Mujtaba Ali
by Mir Mujtaba Ali , Internal Audit Manager , Confidential

....................

interest rate risk.

khaled elkholy
by khaled elkholy , HR MANAGER , misk for import & export

The right answer is interest rate riskkkkkkkkkkkk

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