Determine the risk in invest in corporate bonds, Financial Accounting

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Determine the risk in invest in corporate bonds

Response to the following questions:

1. Abel, an astute investor, buys bonds and always holds them to maturity. He claims that because he holds these bonds to maturity, there is no risk. Is he correct? Explain.

2. If you invest in corporate bonds, what types of risk do you assume?

If possible, please give examples to better understand your answers.

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Financial Accounting: Determine the risk in invest in corporate bonds

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Financial Accounting: Determine the risk in invest in corporate bonds

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