Examlex
Holding everything else constant,if a corporation begins to suffer large losses,then the default risk on its bonds will ________ and the expected return on those bonds will ________.
General Credit
General credit refers to the overall ability of a borrower to obtain loans from lenders based on creditworthiness and past financial behavior.
Stockholder Claims
The rights or interests that shareholders have in a company, primarily related to dividends and assets in the event of liquidation.
Bondholders
Individuals or institutions that own bonds issued by corporations or governments, entitling them to receive the bond's principal back plus interest payments.
Interest and Repayment
Terms referring to the cost of borrowing money (interest) and the act of paying back borrowed funds (repayment).
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