The answer is option C. Interest rate risk.
Risk associated with changing interest rates only impacts fixed income securities. The stream of future fixed interest payments and the final principal repayment lose value as interest rates rise, which lowers the bond's current value. Foreign currencies, which do not provide investors with a stream of income, are unaffected by this risk.
The danger of investment losses brought on by a change in interest rates is known as interest rate risk. For instance, the value of a bond or other fixed-income investment will decrease as interest rates increase. The duration of a bond is the variation in price that results from a change in interest rates.
Learn more about interest rate risk here.
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