For a high-quality debt issuer with a large amount of publicly traded debt, bond investors tend to devote most effort to assessing the issuer's:
A) default risk.
B) loss severity.
C) market liquidity risk.

Question

Quizplus · Accepted Answer

For a high-quality debt issuer with a large amount of publicly traded debt, bond investors tend to focus their effort on assessing the issuer's likelihood of default, rather than on loss severity or market liquidity risk. This is because default risk is considered the most critical element in determining the creditworthiness of the issuer and the likelihood of the investor being repaid.

For a High-Quality Debt Issuer with a Large Amount of Publicly