The risk that a bond issuer will not be able to live up to the promise they make when they issue a bond is known as __________ risk.

Name: The risk that a bond issuer will not be able to live up to the promise they make when they issue a bond is known as __________ risk.
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Question

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Default risk is the risk that a bond issuer will not make the promised payments on the bond, including both interest and principal repayments.

The Risk That a Bond Issuer Will Not Be Able