Ceteris paribus, a blue chip bond has a lower risk premium than other bonds.

Name: Ceteris paribus, a blue chip bond has a lower risk premium than other bonds.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Blue chip bonds are issued by financially stable and creditworthy companies, which makes them less risky than other bonds. As a result, they typically have lower risk premiums, meaning investors do not demand as high of a return in exchange for holding the bond.

Ceteris Paribus, a Blue Chip Bond Has a Lower Risk