Question: Select the correct answer. Rashid has been purchasing bonds from a company that has recently gotten poor ratings for its ability to pay its vendors.

Select the correct answer.

Rashid has been purchasing bonds from a company that has recently gotten poor ratings for its ability to pay its vendors. As a result of the increased risk, the bond's interest rate has increased. What type of risk does Rashid face as an investor?

taxability risk

inflationary risk

currency risk

credit risk

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