The risk that interest payments will not be made,or that the face value of a bond is not repaid when a bond matures is
A) interest rate risk.
B) inflation risk.
C) moral hazard.
D) default risk.

Question

Quizplus · Accepted Answer

Default risk refers to the possibility that the issuer of a bond will not meet its obligations to make interest payments or repay the bond's face value at maturity. This risk is also sometimes referred to as credit risk.

The Risk That Interest Payments Will Not Be Made,or That