Asked by
Natali Sanchez Sosa (Student)
on Dec 02, 2024Verified
Liquidity risk refers to the chance that an investor will incur a loss because it's hard to sell the bond of a company that isn't well known.
Liquidity Risk
The risk that an asset cannot be sold or converted into cash quickly enough to meet short-term financial obligations without a significant loss in value.
Bond
A fixed income instrument that represents a loan made by an investor to a borrower (typically corporate or governmental) which pays periodic interest payments and the return of the principal at maturity.
- Discern among assorted risk forms such as default risk, liquidity risk, and market risk.
Verified Answer
JM
Learning Objectives
- Discern among assorted risk forms such as default risk, liquidity risk, and market risk.