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Which one of the following statements is NOT true? The risk that the lender may not receive payments as promised is called default risk. Investors
Which one of the following statements is NOT true?
The risk that the lender may not receive payments as promised is called default risk.
Investors must pay a premium to purchase a security that exposes them to default risk.
US Treasury securities do not have any default risk and are the best proxy measure for the riskfree rate.
The larger the default risk premium, the higher the probability of default.
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