The correct answer is C because the investor faces two types of risks:

1. Coupon reinvestment risk: Changes in interest rates affect the future value of reinvested coupon payments, including the first coupon and any subsequent ones until the bond is sold.
2. Market price risk: The investor may sell the bond at a price higher or lower than expected due to fluctuations in interest rates.

Coupon reinvestment risk is more significant for investors with a long-term horizon relative to the bond's maturity, while market price risk is more relevant for those with a short-term horizon. For example, a buy-and-hold investor is primarily exposed to coupon reinvestment risk, whereas an investor selling the bond before the first coupon is received faces only market price risk.