The Default Risk Premium Is Measured

question 2

Multiple Choice

The default risk premium is measured

• A) by an index published monthly by the Securities and Exchange Commission.
• B) by an index published monthly by The Wall Street Journal.
• C) as the difference between the yield on a non-Treasury security and the yield on a U.S. Treasury security of the same maturity.
• D) as the difference between the nominal yield on the security and the real after-tax yield on the security.

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Definitions:

Superior Vena Cava

A large vein that carries deoxygenated blood from the upper half of the body to the heart.

Inferior Vena Cava

The large vein that carries deoxygenated blood from the lower and middle body into the right atrium of the heart.

Pulmonary Artery

The blood vessel that transports blood lacking oxygen from the heart's right ventricle to the lungs to receive oxygen.

Left Ventricle

The chamber within the heart that pumps oxygenated blood out into the systemic circulation throughout the body.