Risk to bondholders comes from: a. Possibility of default b. higher interest rates c. higher inflation...
Risk to bondholders comes from:
a. Possibility of default
b. higher interest rates
c. higher inflation
answers:
a. 1 and 3
b. 2 and 3
c. 1 and 2
d. 1,2, and 3
Homework Answers
Risk to bondholders comes from possibility of default, higher interest rates as well as higher inflation.
So the correct answer is option d. i.e. 1, 2 and 3.
Feel free to ask in case of any query relating to this question
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