- CFA Exams
- CFA Level I Exam
- Topic 6. Fixed Income
- Learning Module 14. Credit Risk
- Subject 1. Sources of Credit Risk
CFA Practice Question
The risk that an obligator cannot service debt obligations is ______.
B. credit risk
C. downgrade risk
A. default risk
B. credit risk
C. downgrade risk
Correct Answer: A
Default risk is the risk that the issuer will fail to meet its obligation to make timely payment of interest and principal.
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