1. List and briefly describe 3 major risks in bond investing.
2. Which class of bonds is not affected by one of the three major risks in bond investing listed in Q1, and which specific risk is it?
3. What is the bond market’s single main mechanism for incorporating risks in bonds?
4. How is the bond market’s mechanism listed in Q3 related to bond prices? Include a brief description of how it affects or interacts with bond prices.