Cap risk, contingent claim risk, and interest rate risk


I’ve got a question on the three risks faced by those portfolios that are backing a fixed set of liabilities.

On one question in curriculum book, it says a fixed-income portfolio with non-callable bonds backing a future liability is subject to interest rate risk, cap risk, and contigent claim risk.

I do understand that it is subject to interest rate risk, but why is it also subject to two other risks?

Since it is not a portfolio with floating rate bonds and non-callable issues, the two other risks are not to be concerned, from my view.

Can anyone please explain why it is subject to all three risks?

Thank you.

I was confused by this question as well. The text states that contingent claims risk is only in relation to calls and the questions specifically states that its a non-callable bond portfolio so why is the portfolio subject to contingent claim risk?

question is asking in more generic terms - not related to the particular portfolio…

and question asks

which is obviously true - so YES is the answer. It IS NOT related to the particular liability he is trying to look at. It is a “googly” question.