All Else Equal,the Smaller the Default Risk

question 2

Multiple Choice

All else equal,the smaller the default risk:

• A) the higher the face value of the bond.
• B) the higher the price of the bond.
• C) the lower the price of the bond.
• D) the lower the face value of the bond.
• E) the higher the interest rate of the bond.

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Definitions:

SSDs

Solid State Drives, a type of non-volatile storage media that uses flash memory to store data, offering faster data access speeds and greater reliability than traditional hard disk drives.

Cost

The amount of money required to purchase, operate, or maintain a product or service or the effort involved in achieving something.

ROM

Read-Only Memory, a type of non-volatile storage media that is programmed with data that cannot be modified, or that can only be modified slowly or with difficulty.

Cache Memory

A small-sized type of volatile computer memory that provides high-speed data access to the processor and stores frequently used computer programs, applications, and data.