Business, 22.03.2021 20:50, mv603177

Select the true statement about default risk. It is the risk that the bond's price will fall below its par value. Bondholders have a degree of legal protection against default risk, but it is not comprehensive. Default risk relates to a bond's periodic coupon payments, but not to its maturity payment. Bondholders are guaranteed to be repaid in full if a company enters bankruptcy.

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Select the true statement about default risk. It is the risk that the bond's price will fall below i...