Default Risk Is

question 118

Multiple Choice

Default risk is:

• A) the risk that the lender will not pay the face value of the bond on the maturity date.
• B) the risk that a stock will become worthless.
• C) the risk that the borrower will renegotiate the maturity date on a bond.
• D) the risk that the borrower will not pay the face value of the bond on the maturity date.
• E) the risk that a stock will lose value.

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Definitions:

Group

A number of individuals or things considered together because of similarities or a common purpose.

Team

A group of people brought together to use their individual skills on a common project or goal.

Job Sharing

An employment option in which one full-time job is divided among two or more people according to predetermined hours

Branding

The process of creating a unique image, identity, and reputation for a product, service, or organization in the consumer's mind through marketing, logos, design, and consistent themes.