Multiple Choice
The greater a bond's default risk, the greater the:
A) maturity value of the bond.
B) chance the firm will exercise the call provision on the bond.
C) interest rate stability of the bond in the long run.
D) investment in the bond by risk-averse investors.
E) default risk premium (DRP) associated with the bond.
Correct Answer:
Verified
Correct Answer:
Verified
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