What is the result of a borrower who fails to make payments to the lender when due?
A) Bankruptcy
B) Default
C) Risk ratings
D) Bondholder's claim
E) Bond indenture

Question

Quizplus · Accepted Answer

When a borrower fails to make payments to the lender when due, it is known as default. Bankruptcy may be a potential consequence of default, but it is not the immediate result. Risk ratings, bondholder's claim, and bond indenture are all related to bond investments and are not directly relevant to the question.

What Is the Result of a Borrower Who Fails to Make