Which of the Following Hazards Is LEAST Likely to Be

question 11

Multiple Choice

Which of the following hazards is LEAST likely to be associated with explosive volcanic eruptions?

• A) lava flows
• B) pyroclastic flows
• C) tsunamis
• D) ash fall
• E) mudflows

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Definitions:

Annual Coupon

The yearly interest amount paid to bondholders, typically expressed as a percentage of the bond's face value.

Default Risk Premium

The additional yield a lender demands to compensate for the risk that the borrower may default on the loan.

Liquidity Premium

Additional yield that investors demand for holding a security that is not easily traded or sold without a significant price reduction.

Maturity Risk Premium

The extra yield that investors demand to compensate for the risk of holding a bond until its maturity date.