Several years ago, Tina purchaseda bond with a 10 year maturity date. The bond was issued...
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Several years ago, Tina purchaseda bond with a 10 year maturity date. The bond was issued by Seabrook Incorporated, an issuer that is not very well known. Tina would like to sell the bond and use the money to invest in a business opportunity. When she approaches her advisor about making the sale, she learns that there are not many buyers interested and she will likely get much less for the bond than she anticipated. Which type of risk is this? Oa) Ob) Oc) credit risk market risk interest rate risk Od) liquidity risk 8888 Several years ago, Tina purchaseda bond with a 10 year maturity date. The bond was issued by Seabrook Incorporated, an issuer that is not very well known. Tina would like to sell the bond and use the money to invest in a business opportunity. When she approaches her advisor about making the sale, she learns that there are not many buyers interested and she will likely get much less for the bond than she anticipated. Which type of risk is this? Oa) Ob) Oc) credit risk market risk interest rate risk Od) liquidity risk 8888
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Answer D The type of risk is luquidity risk Luquidity r... View the full answer
Related Book For
Fundamentals of corporate finance
ISBN: 978-0078034633
10th edition
Authors: Stephen Ross, Randolph Westerfield, Bradford Jordan
Posted Date:
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