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    Exam 7: The Risk and Term Structure of Interest Rates
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    The Default-Risk Premium
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The Default-Risk Premium

Question 93

Question 93

Multiple Choice

The default-risk premium:


A) is negative for a U.S. Treasury bond.
B) is also known as the risk spread.
C) must always be greater than 0 (zero) .
D) is assigned by a bond-rating agency.

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