A financial institution that invests $50 million into Digicel Fixed Rate 10 year bonds is exposed to which of the following risks? Question 14Answer a. Credit and interest rate risk. b. Liquidity and technology risk. c. Solvency and technology risk. d. Off-balance sheet and interest rate risk.

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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A financial institution that invests $50 million into Digicel Fixed Rate 10 year bonds is exposed to which of the following risks?

Question 14Answer

a.
Credit and interest rate risk.
b.
Liquidity and technology risk.
c.
Solvency and technology risk.
d.
Off-balance sheet and interest rate risk.
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