1. Which of the following types of risk is avoidable through diversification?

Group of answer choices

total risk

unsystematic risk

credit risk

systematic risk

2. The additional expected return to compensate for the possibility a borrower will fail to pay interest and/or principal when due is called the:

Group of answer choices

liquidity premium

default risk premium

interest rate risk

maturity risk premium

3. Which of the following bonds is considered unsecured, and thus depends on the general credit strength of the corporation for its security?

Group of answer choices

zero-coupon bond

mortgage bond

debenture bond

convertible bond