If the price of municipal bonds suddenly changes because of an unexpected interest rate change then the investment bank Options: A . &nbspfaces a high profit B . &nbspfaces a loss C . &nbspface a inflation D . &nbspface an index risk

If the price of municipal bonds suddenly changes because of an unexpected intere

Question

If the price of municipal bonds suddenly changes because of an unexpected interest rate change then the investment bank

Options:

A . faces a high profit

B . faces a loss

C . face a inflation

D . face an index risk

Answer: Option B
Answer: (b).faces a loss

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