n NISM Certifications
NSM General NISM
Medium

A coupon-paying bond issued by a government (sovereign) is associated with which of the following risks?

Practice question from NISM Series IV - Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Repayment Risk

  2. Reinvestment Risk

    Correct answer

  3. C

    Both 1 and 2

  4. D

    No risks are associated with government bonds

A full explanation for this question is being written. In the meantime, the correct answer is highlighted above.

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