What is a simple loan? Answers: A debt instrument where the borrower repays only the principal A debt instrument where the borrower repays the principal and interest at the beginning of the loan. A debt instrument where the borrower repays the principal and interest at the end of the loan. A debt instrument where the borrower repays only the interest What is default risk? Answers: The risk that a bond or other debt instrument will make the promised payments. The risk that a bond or other debt instrument will avoid the promised payments. The risk that a stock or other equity instrument will not make the promised payments. The risk that a bond or other debt instrument will not make the promised payments. What is interest rate risk? Answers: The risk that the market price of a bond or other debt instrument will increase due to increases in the interest rate. The risk that the market price of a bond or other debt instrument will decrease due to increases in the interest rate. The risk that the market price of a bond or other debt instrument will increase due to no changing in the interest rate. The risk that the market price of a bond or other debt instrument will decrease due to increases in the exchange rate What is an investment portfolio? Answers: The set of financial and other investments or assets held by an economic entity. The set of financial and other investments or assets held by investment banks The set of financial and other investments or assets held by banks All of the above