Choose the best answer. The Default Risk Premium: a. Is the premium reflecting the possibility of the failure of the borrower to pay its principal and interest payments on time. b. The premium reflecting the risk that unanticipated events will occur to interest rates over the term of the security c. Is not a premium reflected in the interest rate that the Federal Government has to pay when it borrows money for 30 years (issues a long term bond). d. All of the statements above are correct. e. Statements and care correct. Question 25 2 pts Choose the best answer. The Liquidity Risk Premium: a. Is the premium reflecting the possibility of the failure of the borrower to pay its principal and interest payments on time. b. The premium reflecting the risk that urmonticipated events will occur over the term of the security. c. The premium reflecting the difficulty that the holder may have in selling the bond at a reasonable price in a reasonable period of time. d. All of the statements above are correct. e. Statements and care correct