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    Financial Markets and Institutions Study Set 1
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    Exam 5: How Do Risk and Term Structure Affect Interest Rates?
  5. Question
    A Bond with Default Risk Will Always Have a ________
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A Bond with Default Risk Will Always Have a ________

Question 83

Question 83

Multiple Choice

A bond with default risk will always have a ________ risk premium,and an increase in its default risk will raise the risk premium.


A) positive
B) negative
C) unpredictable
D) minimal

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