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:

Ordinary Maintenance

Routine or regular upkeep necessary to maintain the condition or functionality of property or equipment.

Personal Liability

Refers to an individual's legal responsibility for debts or actions, potentially affecting their personal assets.

Respondeat Superior

A legal doctrine that holds an employer or principal legally responsible for the wrongful acts of an employee or agent, if such acts occur within the scope of the employment or agency.

Employer Liability

The legal responsibility of employers for the actions of their employees and for ensuring a safe workplace.