1. The higher the risk associated with a bond, the likely a corporation might default on paying the investor. Interest rates for riskier bonds tend to be so that investors are willing to take on that risk. BONUS: A riskier bond usually comes from a corporation that has a credit rating

Question

1. The higher the risk associated with a bond, the  likely a corporation might default on paying the investor. Interest rates for riskier bonds tend to be  so that investors are  willing to take on that risk. BONUS: A riskier bond usually comes from a corporation that has a  credit rating

GPT-4o mini · Answer

1. The higher the risk associated with a bond, the more likely a corporation might default on paying the investor. Interest rates for riskier bonds tend to be higher so that investors are compensated for taking on that risk. BONUS: A riskier bond usually comes from a corporation that has a lower credit rating.