Which One of the Following Risk Premiums Compensates for the Possibility

question 4

Multiple Choice

Which one of the following risk premiums compensates for the possibility of nonpayment by the bond issuer?

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

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Definitions:

Colles Fracture

A type of fracture of the distal radius in the forearm with dorsal (posterior) displacement of the wrist and hand.

Distal End

The part of any structure further away from the center of the body or point of attachment.

Radius

One of the two large bones in the forearm, extending from the elbow to the wrist.

Osteomalacia

A condition characterized by softening of the bones due to vitamin D deficiency or inadequate calcium absorption, leading to increased risk of fractures.