Suppose the issuer of a bond fails to pay some of the interest or principal that was promised to the bondholders. This failure is referred to as a
a. breach.
b. default.
c. risk.
d. term failure.
b
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A sales tax is imposed on the sellers of gasoline. This tax shifts
A) the supply of gasoline curve leftward. B) the supply of gasoline curve rightward. C) the demand for gasoline curve leftward. D) both the supply curve of gasoline and demand curve for gasoline leftward.
Stocks and bonds issued in banking-oriented systems are rather __________ because they are traded __________
A) liquid; frequently B) liquid; infrequently if at all C) illiquid; frequently D) illiquid; infrequently if at all
A price ceiling set below the equilibrium price causes a shortage in the market
a. True b. False Indicate whether the statement is true or false
If, regardless of price, the quantity demanded is a constant amount, then the demand curve is:
A. horizontal. B. vertical. C. upward sloping. D. downward sloping.