The Higher the Default Risk on a Bond,the Higher the Interest

question 230

True/False

The higher the default risk on a bond,the higher the interest rate will be.

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Definitions:

American Revolution

The colonial revolt that took place between 1765 and 1783, in which the Thirteen American Colonies won independence from Great Britain, establishing the United States.

Excitation Current

(1) The DC used to produce electromagnetism in the fields of a DC motor or generator, or in the rotor of an alternator or synchronous motor; (2) The AC that flows in the primary of a transformer with no load connected.

Primary

Referring to the first or main element of a system or device, such as the primary coil in a transformer.

Secondary

Refers to the coil or winding in a transformer that receives energy from the primary winding and delivers it to the load.