Which of the following terms is the chance that the bond issuer will not be able to make timely payments?
A) Credit quality risk
B) Interest rate risk
C) Liquidity of interest rate risk
D) Term structure of interest rates

Question

Quizplus · Accepted Answer

Credit quality risk refers to the possibility that the bond issuer may default on their payments or be unable to make timely payments. This risk is a significant factor to consider when investing in bonds. Interest rate risk refers to the potential for changes in interest rates to affect the bond's value, while liquidity risk is the risk of not being able to sell the bond quickly or easily. The term structure of interest rates relates to the relationship between interest rates and the maturity of a bond.

Which of the Following Terms Is the Chance That the Bond