Explain the relationship between the interest rate on a bond and the default risk on a bond

What will be an ideal response?

With bonds, the higher the default risk, the higher the interest rate, and the lower the default risk, the lower the interest rate.

Economics

You might also like to view...

One's own personal gain

a. standard of living b. privatize c. economic system d. self-interest e. factor payments

Economics

At what quantity is Sarah Machinery indifferent between two technologies?

a. 5 b. 6 c. 7 d. 8

Economics