All Else Equal,the Greater the Default Risk,the ________ of the Bond

question 44

Multiple Choice

All else equal,the greater the default risk,the ________ of the bond.

• A) higher the face value
• B) higher the price
• C) lower the price
• D) lower the face value
• E) lower the interest rate

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Definitions:

Prefrontal Cortex

The front part of the frontal lobes of the brain, involved in complex cognitive behavior, personality expression, decision making, and moderating social behavior.

Executive Functioning

A set of cognitive processes including working memory, flexible thinking, and self-control, that are necessary for managing oneself and one's resources to achieve a goal.

Forebrain

refers to the anterior part of the brain, including the cerebral hemispheres, thalamus, and hypothalamus, responsible for complex behaviors and functions.

Memory

The mental capability to encode, store, and retrieve information, ranging from personal experiences to knowledge of facts.