The chance that interest or principal payments will not be made because the issuer defaults. For lower-credit-rated issuers, "junk" bonds, credit risk is higher, and so are yields to compensate for the increased risk. 3. Inflation Risk: Inflation reduces the value of money; thus, it diminishes the purchase power of the fixed interest received by the bond. If inflation moves higher th... https://finxl.in/prepare-budget-for-a-company-certification-online-training-courses.html