In a severe recession, the major source of risk faced by investors who purchase corporate bonds is
A) interest rate risk.
B) purchasing power risk.
C) liquidity risk.
D) default risk.

Name: In a severe recession, the major source of risk faced by investors who purchase corporate bonds is A) interest rate risk. B) purchasing power risk. C) liquidity risk. D) default risk.
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Question

Quizplus · Accepted Answer

In a severe recession, companies may struggle financially, increasing the risk of default on their bond obligations.

In a Severe Recession, the Major Source of Risk Faced