Default Risk

question 88

Multiple Choice

Default risk

• A) is the probability that a borrower will not pay in full the promised coupon or principal.
• B) exists only for the bonds of small corporations.
• C) is also known as market risk.
• D) is zero for bonds issued by cities and states.

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Definitions:

Somatic Nervous Systems

A part of the peripheral nervous system involved in voluntary control of body movements through the action of skeletal muscles.

Glial Cells

Non-neuronal cells in the central and peripheral nervous system that support, protect, and provide a supportive framework for neurons.

Axons

Long, threadlike parts of nerve cells which transmit electrical impulses away from the neuron's cell body.

Myelin

A fatty substance that surrounds and insulates the axons of nerve cells, speeding up the transmission of electrical signals in the nervous system.