CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Altra X Inc. is unable to make a scheduled coupon payment on the coupon payment date. This is an example of ______.

A. default risk
B. credit spread risk
C. down grade risk
Correct Answer: A

Default risk occurs when the bond issuer is unable to make payment as specified in the bond indenture.

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