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A bond investor is always exposed to credit risk. Credit risks can be classified into three types. They are:
Default Risk
Credit Spread Risk
Downgrade Risk.
Australian Securities and Investment Commission: The Australian Securities and Investment Commission (ASIC) is an independent government body established by the ASIC Act 1989.
Bonds can also be classified into convertible and non-convertible depending upon whether they carry a conversion feature or not. Convertible bonds are the ones which ca
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