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

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When did the European Union become a common market?

What will be an ideal response?

Economics

Currently, the U.S. national income and product accounts (NIPA) use what type of price index to calculate real GDP?

A) Fixed-weight B) Variable-weight C) Chain-weight D) Heavy-weight

Economics

The presence of a learning curve may induce a decision maker in a startup firm to choose

A) low levels of output to exploit economies of scale. B) high levels of output to exploit economies of scale. C) low levels of output to shift the average cost curve down over time. D) high levels of output to shift the average cost curve down over time. E) to produce more than one output.

Economics

Cyclical unemployment is:

A. unemployment caused by short-term economic fluctuations reflected in GDP growth. B. unemployment resulting from a mismatch between the skills workers can offer and the skills demanded. C. unemployment caused by workers who are changing their location, job, or career. D. the effect of wages remaining persistently above the market-clearing level.

Economics