A premium which reflects possibility of issuer who does not pay principal amount of bonds is called

A premium which reflects possibility of issuer who does not pay principal amount of bonds is called Correct Answer default risk premium

A premium which reflects possibility of issuer who does not pay principal amount of bonds is called default risk premium. A default risk premium is effectively the difference between a debt instrument's interest rate and the risk-free rate.

Related Questions

Type of bonds which is fully backed by credit and faith of issuer is classified as
What is the feature of some bonds whereby the issuer can redeem it before it matures?
Fixed price at which stock is purchased from issuer by investment banks is called