The Fact That Borrowers Sometimes Default on Their Loans by Declaring

question 67

Multiple Choice

The fact that borrowers sometimes default on their loans by declaring bankruptcy is directly related to the characteristic of a bond called

• A)credit risk.
• B)interest risk.
• C)term risk.
• D)private risk.

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Definitions:

High Self-Esteem

A positive assessment of one's own worth or abilities; feeling confident and valuable.

Failure

The lack of success in achieving a goal, or the inability to perform a duty or expected action.

Conflicting Emotions

The experience of having opposing or contradictory feelings toward a person, situation, or idea simultaneously.

Angry

A strong feeling of annoyance, displeasure, or hostility.