In Addition to Inflation Risk,10- Year Government Bonds Face Which

question 46

Multiple Choice

In addition to inflation risk,10- year government bonds face which type of risk?

• A)Credit risk
• B)Systematic risk
• C)Interest rate risk
• D)Default risk

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Definitions:

Depreciation

The methodical distribution of the expense of a physical asset across its lifespan.

Plant Assets

Tangible assets used in a company's operations that have a useful life of more than one year.

Notes Payable

A written agreement to pay a specified amount, usually including interest, by a certain date.

Direct Method

A way of preparing a cash flow statement where actual cash flows from operating activities are listed directly.