Solved

The ________ Premium Is That Portion of a Nominal Interest

Question 14

Multiple Choice

The ________ premium is that portion of a nominal interest rate or bond yield that represents compensation for the possibility of nonpayment by the bond issuer.


A) interest rate risk
B) taxability
C) liquidity
D) inflation
E) default risk

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q9: LIAS Inc.bonds have a face value of

Q10: Assume an investor has a tax rate

Q11: All else constant,a coupon bond that is

Q12: Floating-rate bonds generally have<br>A)an unlimited variable rate

Q13: A zero coupon bond with a face

Q15: A General Co.bond has a coupon rate

Q16: Last year,Theo purchased a fixed-rate,7-year bond at

Q17: ABC bonds have a coupon rate of

Q18: You require a 3.2 percent real rate

Q19: The parts of an indenture that protect