Question: 4 - Matthew recently purchased an 8 % , semi - annual, 1 0 - year bond that was issued by Importworid Inc., a Canadian
Matthew recently purchased an semiannual, year bond that was issued by Importworid Inc., a Canadian corporation. The bond is denominated in Japanese yen. He is looking forward to receiving his regular interest income but, was surprised when his financial advisor told him that there are many risks associated with such interest payments. To what risks is Matthew's investment exposed?
default risk
i Inflation risk
iif Interest rate risk
Iv forelgn exchange rate risk
I, il and Iiil
il and iv
i and iv
I, II ili and iv
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