The Risk That the Borrower Will Not Pay the Face

question 164

Multiple Choice

The risk that the borrower will not pay the face value of a bond on the maturity date is called the ________ risk.

• A) default
• B) maturity
• C) timing
• D) full-pay
• E) par value

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Definitions:

Time Increment

A specified increase in time, used in scheduling, simulations, or time-based calculations.

Milliseconds

A unit of time equal to one-thousandth of a second, commonly used to measure durations that require high precision, such as response times in computers.

True To False Transition

refers to the change of a digital signal or condition from a true (high, active) state to a false (low, inactive) state.