Examlex
Suppose the sky is covered with stratus clouds. How might you determine whether middle or high clouds are also present?
Debt Ratings
Assessments provided by rating agencies that evaluate the creditworthiness of debt issuers and their financial instruments.
Default Risk
Default risk is the chance that a borrower will be unable to make the required payments on their debt obligations.
Interest Rate Risk
The risk of loss to an investor from changes in the price of a bond that arise from changes in the market interest rate. Also called price risk and maturity risk.
Maturity Risk
Maturity risk pertains to the uncertainty and potential loss associated with holding a bond or other fixed-income investment until its maturity date.
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