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

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

		positive; raise
		negative; raise
		positive; lower
		negative; lower

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Exploring Economics

ISBN: 9781439040249

5th Edition

Authors: Robert L Sexton

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Posted Date: Feb 14, 2024 12:31 AM

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

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The correct answer to this question is positive raise Explanation A bond with default risk wil... View the full answer

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