Examlex
Which statement is correct?
Default Risk Premium
The additional return that investors require to compensate them for the risk of default by the borrower.
Par Value
The face value of a bond or stock, representing the amount that the issuer agrees to pay at maturity or the base value of a stock set by the issuing company.
Coupon Rate
The interest rate stated on a bond or other fixed-income security, representing the periodic payment to bondholders, usually expressed as a percentage of the principal.
Yield to Maturity
Yield to maturity is the total return anticipated on a bond if it is held until it matures, including all interest payments and any gain or loss if the bond was purchased at a discount or premium to its face value.
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