Evaluate the Expression. -15 - (-10)

question 125

Multiple Choice

Evaluate the expression.
-15 - (-10)

• A) 5
• B) -5
• C)-25
• D) 25

---

Definitions:

Default Risk Premium (DRP)

The additional yield that investors demand for holding a bond that has a risk of default over a risk-free bond.

Liquidity Premium (LP)

Additional return that investors demand for holding an asset that is not easily convertible to cash without a loss in value.

Real Risk-free Rate

The return on an investment with no risk of financial loss, adjusted for inflation.

Inflation Premium

The part of the nominal interest rate that represents compensation to the lender for the loss of purchasing power due to inflation.