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Corporate bonds often have higher yields than government bonds to compensate investors for which additional risk?   A Default B ESG C Market D Liquidity

Corporate bonds often have higher yields than government bonds to compensate investors for which additional risk?   A Default B ESG C Market D Liquidity

Principles Of Marketing
Principles Of Marketing
17th Edition
ISBN:9780134492513
Author:Kotler, Philip, Armstrong, Gary (gary M.)
Publisher:Kotler, Philip, Armstrong, Gary (gary M.)
Chapter1: Marketing: Creating Customer Value And Engagement
Section: Chapter Questions
Problem 1.1DQ
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Corporate bonds often have higher yields than government bonds to compensate investors for which additional risk?
 
  • A
    Default
  • B
    ESG
  • C
    Market
  • D
    Liquidity
Expert Solution
Step 1 Introduction

Debt instruments with a fixed yield are corporate bonds. A business borrows money from investors, as they operate. It returns the principal amount when the bond matures and interest over the bond's life. The business runs the risk of not making these payments. These bonds are also vulnerable to interest rate risk.

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