Question 2 Incomplete answer Marked out of 1.00 Match the following terms with t

Question

Question 2 Incomplete answer Marked out of 1.00 Match the following terms with their corresponding definition default risk Choose Choose... a premium to compensation for anticipated increase in prices The quoted interest rate paid on securities The additional return required by investors for securities that cannot quickly be converted .. The interest rate on a security that has no risk the additional return required to compensate for higher risk associated with long term secu.. the additional return to compensate for risk of default premium Please answer all parts of the question

Explanation / Answer

Correct Answer: Additional Return to compensate risk of Default.

Reasoning: "the default risk premium" means and extra amount or extra return which is being charged by lender to compensate their Risk Of Default.

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