Which of the Following Is not a Risk Premium Component

question 44

Multiple Choice

Which of the following is not a risk premium component of bonds?

• A) Bond quality
• B) Term to maturity of the bond
• C) Indenture provisions
• D) Foreign bond risk
• E) All of the above are risk premium components of bonds.

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Definitions:

Bank Deposits

Funds placed into a bank account by a depositor, including cash and checks, for safekeeping and potential interest earnings.

Checking

A banking service allowing customers to deposit, withdraw, and manage funds easily for everyday transactions.

External Document

This refers to documents created outside the organization, such as legal contracts, government regulations, or external reports, that might have an influence on the business operations or procedures.

Cash Payments

Transactions involving the outflow of cash to settle obligations or purchase goods and services.