Question
Which one of these is the Credit risk of a bond: 1. The risk that the purchaser/holder of the bond will go bankrupt. 2. The
Which one of these is the Credit risk of a bond:
1. The risk that the purchaser/holder of the bond will go bankrupt.
2. The risk that the issuer will not make all the contractual payments of interest and/or principal for the bond.
3. The risk that the issuer will pay off the bond early, and call it away from bondholders.
4 All of the above
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Fundamentals of Multinational Finance
Authors: Michael H. Moffett, Arthur I. Stonehill, David K. Eiteman
5th edition
205989756, 978-0205989751
