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Author Question: Explain the relationship between the interest rate on a bond and the default risk on a bond. What ... (Read 191 times)

dbose

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on: Jun 29, 2018
Explain the relationship between the interest rate on a bond and the default risk on a bond.
 
  What will be an ideal response?

Question 2

Economist Robert Fogel has estimated that by the year 2040, individuals in the United States will be spending
 
  A) more time in the workforce and more time in leisure activities than they do today.
  B) less time in the workforce and less time in leisure activities than they do today.
  C) more time in the workforce and less time in leisure activities than they do today.
  D) less time in the workforce and more time in leisure activities than they do today.


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lindahyatt42

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Reply #1 on: Jun 29, 2018
Answer to Question 1

With bonds, the higher the default risk, the higher the interest rate, and the lower the default risk, the lower the interest rate.

Answer to Question 2

D


dbose

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Reply 2 on: Jun 29, 2018
YES! Correct, THANKS for helping me on my review

momolu

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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