A) risk that a bond's price will decline in response to an increase in interest rates B) compensation required for default risk C) risk that the face value may not be repaid
15) risk premium
16) default risk
17) interest rate risk
What will be an ideal response?
Answers: 15) B 16) C 17) A
You might also like to view...
Understanding where a company is competitive requires
A. identifying a company's core competencies and distinctive competencies (if any). B. developing quantitative strength ratings for the company and key rivals on each industry key success factor and each pivotal resource, capability, and value chain activity. C. determining whether a company has a cost-effective value chain. D. developing quantitative measures of a company's chances for future profitability. E. analyzing whether a company is well positioned to gain market share and be the industry's profit leader.
Lara, an accountant, conducts an audit of Microstuff, Inc. After the conclusion of the audit, the working papers created in preparing the audit must be
A. disposed of immediately. B. kept until the Public Company Accounting Oversight Board's review. C. maintained for seven years. D. retained forever.
Isabel obtains a fire insurance policy on her home from Justice Insurance Company. The home is lost in a fire, but the parties dispute the amount of Justice's liability under an ambiguous clause in the policy. A court would most likely
A. interpret the clause against Isabel. B. interpret the clause against Justice. C. rewrite the clause and apply it as rewritten. D. strike the clause from the policy.
Consumers who are innovators tend to be young and well educated.
Answer the following statement true (T) or false (F)