CFA Practice Question

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CFA Practice Question

Credit risk can be described as ______.
A. the risk that the issuer will fail to satisfy the terms of the obligation with respect to the timely payment of the amount borrowed
B. the risk that the issuer will fail to satisfy the terms of the obligation with respect to the timely payment of interest
C. the risk that the issuer will fail to satisfy the terms of the obligation with respect to the timely payment of interest and repayment of the amount borrowed
Explanation: Credit risk is the risk that the issuer will default on its obligations (timely payment of interest and repayment of the amount borrowed).

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