Question

Rachid has been purchasing, bonds from a company that has recently gotten poor ratings for its ability to pay its verders. As a result of the

increased risk, the brands interest rate has increaned. What type of risk does Rashid face as an investor

A fanatility risk

B. Inflationary

occurrency

D. creatrick

Answer 1

Credit risk

Explanation:

Since Rachid has purchased bonds from a company poorly rated his biggest risk is not receiving his money back. When the bond is at its maturity.

So the risk Rachid and all buyers face is a credit risk.