Bonds with no default risk are called
A)flower bonds.
B)no-risk bonds.
C)default-free bonds.
D)zero-risk bonds.

Question

Quizplus · Accepted Answer

Bonds with no default risk are commonly referred to as default-free bonds. A bond with no default risk means the issuer is almost certain to pay interest and principal on time and in full. While no investment is truly risk-free, these bonds are considered to have the lowest level of risk. The other answer choices are not commonly used in the finance industry to describe bonds with no default risk.

Bonds with No Default Risk Are Called