Multiple Choice
Default risk is the risk that
A) the lender will not pay the face value of the bond on the maturity date.
B) a stock will become worthless.
C) the borrower will renegotiate the maturity date on a bond.
D) the borrower will not pay the face value of the bond on the maturity date.
E) a stock will lose value.
Correct Answer:
Verified
Correct Answer:
Verified
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