Examlex
Between two securities with the same expected yield and a different credit rating,the risk adverse investor would choose the security with the lowest rank rating.
Default Risk Premium
The portion of a nominal interest rate or bond yield that represents compensation for the possibility of default.
Inflation Premium
The extra yield on an investment that investors require as compensation for the loss of purchasing power due to inflation.
Bond Payments
The regular interest payments made to bondholders, as well as the return of principal at the bond's maturity date.
Debenture
An unsecured loan certificate issued by a company, backed by general credit rather than by specified assets.
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