Exercise

Fill in the blank

1. The risk that the bond market will decline as a whole, dragging down the value of individual securities, is known as _____.

2. The risk that an issuer’s creditworthiness could drop or that the issuer could default is _____.

3. The risk that a new set of regulations could adversely affect the price of a bond is _____.

4. The risk that a specific security will underperform the overall market is _____.

5. The risk that an investor will have difficulty finding a buyer for a security is _____.

6. The risk that the diminishing value of a dollar will cause a fixed return to decrease i