The Spread Between the Interest Rates on Bonds with Default

question 115

Multiple Choice

The spread between the interest rates on bonds with default risk and default-free bonds is called the

• A)risk premium.
• B)junk margin.
• C)bond margin.
• D)default premium.

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Definitions:

Gasping

The act of taking quick, short breaths through the mouth, often as a result of shock, surprise, or needing air.

Mortality Rates

The measure of the number of deaths (in general, or due to a specific cause) in a particular population, scaled to the size of that population, per unit of time.

Sleeping Hours

Sleeping hours refer to the duration of time that an individual spends in sleep within a 24-hour period.

Night Terror

A sleep disorder causing feelings of terror or dread, and typically occurs during non-REM sleep.