A purchaser of zero-coupon corporate bonds would NOT be exposed to which of the following risks?

A purchaser of zero-coupon corporate bonds is indeed exposed to various types of risks, but reinvestment risk is not one of them. Reinvestment risk refers to the uncertainty surrounding the rate at which cash flows can be reinvested in the future. This risk primarily affects investors who receive periodic interest payments, as they may have to reinvest those payments at lower rates than the initial investment.

Zero-coupon bonds do not provide periodic interest payments; instead, they are sold at a discount and mature at par value. As a result, the investor does not have cash flows that need to be reinvested along the way. Since reinvestment risk is tied to the availability of interim cash flows and zero-coupon bonds have none until maturity, this type of risk is not applicable to them.

In contrast, credit risk is always present with corporate bonds; the issuer may default, affecting the investor's returns. Market risk also affects zero-coupon bonds, as their prices can fluctuate based on changes in interest rates. Lastly, inflationary risk is relevant because the purchasing power of the proceeds received at maturity may be eroded by inflation over time. Thus, the unique structure of zero-coupon bonds alleviates the investor from concerns related to rein