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

Question

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

seasoned risk premium
nominal risk premium
default risk premium
quoted risk premium

LohaHridoy

5 views

2025-01-04 04:42

1 Answers

Related Questions

Premium which is considered as difference of expected return on common stock and current yield on Treasury bonds is called?

1 Answers 6 Views

Bonds which are more risky than corporate bonds and are issued by major corporations are classified as?

1 Answers 4 Views

Which will act as a proof of premium payment should any dispute arise as to premium payment?

1 Answers 4 Views

Bonds used in purpose of specific projects which are financed by collateral for issuing bonds are classified as?

1 Answers 6 Views

Type of bonds which is fully backed by credit and faith of issuer is classified as?

1 Answers 4 Views

Fixed price at which stock is purchased from issuer by investment banks is called?

1 Answers 4 Views

Type of bond for which bonds present value is greater than bonds face value is classified as?

1 Answers 5 Views

If a MAN is called GIRL, GIRL is called WOMAN, WOMAN is called BOY, BOY is called BUTLER and BUTLER is called ROGUE, who will serve in a restaurant ?

1 Answers 5 Views

Bonds issued for longer term and must be sold in country whom currency is not used in denomination of bonds are classified as?

1 Answers 5 Views

Directions : In each of the following questions a statement is given, followed by two conclusions. Give answer : Statement : Why don't you go to the court if the employer does not pay you the Provident Fund contribution Assumptions : I. Courts can intervene in matters of dispute between employer and employees. II. It is obligatory for the employer to pay the Provident Fund contribution to the employees.?

1 Answers 5 Views

AhmedNazir · Accepted Answer · 2022-09-01T13:21:41+06:00

AhmedNazir

Answer: Option 3

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.

5 views Answered 2022-09-01 13:21