Default Risk Is the Risk That

question 39

Multiple Choice

Default risk is the risk that

• A) the lender will not pay the face value of the bond on the maturity date.
• B) a stock will become worthless.
• C) the borrower will renegotiate the maturity date on a bond.
• D) the borrower will not pay the face value of the bond on the maturity date.
• E) a stock will lose value.

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