What determine(s) the risk of investing in a bond issue, which in turn affects the interest rate investors demand and therefore the bond's price?
A)industry economic characteristics
B)the financial health of a firm
C)particular provisions of a bond issue
D)all of the above
E)none of the above

Question

Quizplus · Accepted Answer

All of the above factors determine the risk of investing in a bond issue, which affects the interest rate investors demand and therefore the bond's price. Industry economic characteristics, financial health of a firm, and particular provisions of a bond issue can all impact the likelihood of default and the potential return on investment.

What Determine(s) the Risk of Investing in a Bond Issue