An interest rate risk means :
(1) When borrowers fail to fulfill the terms of the loan contract
(2) A rise in interest rate will mean a fall in the value of security in the secondary market
(3) A rise in interest rate will raise the value of financial security in the secondary market
(4) When unintended inflation arises
Answer - (2) A rise in interest rate will mean a fall in the value of security in the secondary market.
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