Which One of the Following Statements Is NOT True

question 3

Multiple Choice

Which one of the following statements is NOT true?

• A) The risk that the lender may not receive payments as promised is called default risk.
• B) Investors must pay a premium to purchase a security that exposes them to default risk.
• C) U.S. Treasury securities do not have any default risk and are the best proxy measure for the risk-free rate.
• D) All of the above are true statements.

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