Canadian government bonds have no default risk because ________.
A) they are backed by the full faith and credit of the federal government
B) the federal government can increase taxes to pay its obligations
C) they are backed with gold reserves
D) they can be exchanged for silver at any time
Correct Answer:
Verified
Q1: Default risk is the risk that _.
A)
Q2: Everything else held constant, if the federal
Q2: If the possibility of a default increases
Q4: Which of the following statements is true?
A)
Q6: An increase in the riskiness of corporate
Q10: The spread between interest rates on low
Q11: If a corporation begins to suffer large
Q12: An increase in default risk on corporate
Q12: The risk that interest payments will not
Q19: If the probability of a bond default
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