Question: The default-risk premium Multiple Choice must always be greater than 0 (zero). is assigned by a bond-rating agency. is negative for a U.S. Treasury bond.

The default-risk premium

Multiple Choice

  • must always be greater than 0 (zero).

  • is assigned by a bond-rating agency.

  • is negative for a U.S. Treasury bond.

  • is also known as the risk spread.

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