What kind of risk is captured in bond ratings? I. liquidity risk
II. interest rate risk
III. default risk
A)III only
B)II and III only
C)I and II only
D)I, II, and III

Name: What kind of risk is captured in bond ratings? I. liquidity risk II. interest rate risk III. default risk A)III only B)II and III only C)I and II only D)I, II, and III
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Question

Quizplus · Accepted Answer

Bond ratings primarily capture default risk, assessing the likelihood that the bond issuer will fail to make the promised payments.

What Kind of Risk Is Captured in Bond Ratings? I