Which of the following describes the interest rate on debt that is virtually free of default risk?

Question

Quizplus · Accepted Answer

The term "virtually free of default risk" refers to a risk-free rate, which is the interest rate on debt that has no risk of default. The real rate (A) adjusts the nominal rate for inflation, the nominal rate (B) includes both the real rate and inflation rate, and the inflation rate (D) measures the rate at which the general level of prices for goods and services is rising.

Which of the Following Describes the Interest Rate on Debt