Question
The default risk premium refers to the extra compensation demanded by investors for the possibility that the issuer might Blank______.
Multiple choice question.
lower the coupon rate
fully fund the bond's sinking fund
call the bond
not make all the promised payments
Multiple choice question.
lower the coupon rate
fully fund the bond's sinking fund
call the bond
not make all the promised payments
Answers
GPT-4o mini
The default risk premium refers to the extra compensation demanded by investors for the possibility that the issuer might **not make all the promised payments**.