A bond with default risk will always have a ________ risk premium, and an increase in its default risk will raise the risk premium.
A) positive
B) negative
C) unpredictable
D) minimal
Answer: A) positive
A bond with default risk will always have a ________ risk premium, and an increase in its default risk will raise the risk premium.
A) positive
B) negative
C) unpredictable
D) minimal
Answer: A) positive