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Question 2: Select the correct answer (40 points) 1. Interest rate risk is: (10 points) A. The risk that bond prices will decrease B. The risk that individual investors, businesses, or financial institutions cannot meet their short-term debt obligations C. The possibility that changes in interest rates will result in losses in the bond's value D. None of the above 2. The Yield to maturity on a bond is: (10 points) A. Below the coupon rate when the bond sells at a discount and above the coupon rate when the bond sells at a premium B. The interest rate that makes the present value of the payments equal to the bond price C. Based on the assumption that all future payments received are reinvested at the coupon rate