The ________ Premium Is That Portion of a Nominal Interest

question 14

Multiple Choice

The ________ premium is that portion of a nominal interest rate or bond yield that represents compensation for the possibility of nonpayment by the bond issuer.

• A)interest rate risk
• B)taxability
• C)liquidity
• D)inflation
• E)default risk

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Definitions:

Pregnant

The condition of having a developing embryo or fetus in the body, as a result of the fertilization of an egg by a sperm.

Amniocentesis

A medical procedure used during pregnancy to test the amniotic fluid surrounding the fetus for genetic abnormalities and other conditions.

Ectopic Pregnancy

A pregnancy where the fertilized egg implants outside the uterus, often in a fallopian tube, which can lead to serious health risks.

Blood Pressure

The pressure of circulating blood on the walls of blood vessels, often measured for diagnostic purposes.