A bond may be defaulted without penalty.

Name: A bond may be defaulted without penalty.
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

A default on a bond means that the issuer has failed to make interest or principal payments as promised, which typically results in penalty fees, credit rating downgrades, and increased borrowing costs. Therefore, defaulting on a bond would result in penalties and other negative consequences.

A Bond May Be Defaulted Without Penalty