When there is an element of default risk on a bond,the interest rate will include

Name: When there is an element of default risk on a bond,the interest rate will include
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When there is an element of default risk on a bond, the interest rate will include a risk premium, compensating investors for the additional risk of default. While a default premium may be a component of the risk premium, it is not a commonly used term in finance. A nominal premium does not exist in finance terminology.

When There Is an Element of Default Risk on a Bond,the