premium is that portion of the bond yield that represents compensation

jagguarpaw January 10, 2017 0 Comments

 

Question: The ___ premium is that portion of the bond yield…

 

The ___ premium is that portion of the bond yield that represents compensation for potential difficulties that might be encountered should the bond holder wish to sell the bond prior to maturity.

 

A) Taxability

 

B) Liquidity

 

C) Default Risk

 

D) Inflation

 

E) Interest Rate Risk