Because of the Active Bond Market in Chicago,one Risk That

question 46

Multiple Choice

Because of the active bond market in Chicago,one risk that a corporate bond is less likely to expose you to is the

• A)liquidity risk.
• B)credit risk.
• C)default risk.
• D)interest rate risk.

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Definitions:

Cash Flow

The total amount of money being transferred into and out of a business, especially concerning liquidity.

Current Assets

Resources anticipated to be turned into cash, sold, or used up within a year or throughout the typical operating cycle of the company.

Net Sales

Total sales revenue minus returns, allowances, and discounts.

Gross Profit

Gross profit refers to the difference between revenue and the cost of goods sold before administrative, overhead, and other expenses.