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Q: What kind of bond has the highest risk of default?
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Order the bond types below from lowest to highest risk of default?

There are no bond types below your question; It is impossible to answer your question.


Does a T-Bond have a default risk premium?

yes


What type of bond has the highest risk?

High risk bonds are called junk bonds.


Why would you check the rating of a bond?

There are two complimentary reasons to check a bond's rating. If you're a risk-averse investor, checking a bond's rating indicates the bond's risk of default. These guys look for "investment grade" bonds. If you're an aggressive investor, risk equals reward: the worse a bond is, the more it pays.


What risk is associated with a us corporate bond?

Many the main risk is to default , but also important is inflation, maturity, credit ratings and more..


Why would investors buy a junk bond?

Firsly investors buy junk bond because they are cheaper.Although they have higher risk of default they also have higher return.


What is the nature of the risk associated with risk-free US government bonds?

'Risk-free' US government bond shave virtually no risk of default, but they are exposed to interest rate risk - the chance that interest rates will rise, causing bond prices to fall and investors to experience either a real or an 'opportunity' loss


How risky are junk bonds mutual funds?

Extremely Risky. Some of the risks involved in investing in Bonds are: 1. Interest Rate Risk 2. Re-investment Risk 3. Call Risk 4. Default Risk & 5. Inflation Risk The Default Risk is the highest risk factor wherein you may not get your money back and in case of Junk Bonds this is extremely high, that is why they are called Junk Bonds Junk Bonds refer to Bonds issued by company's with low creditworthiness and past history of default in payments


What is a value bond?

a bond is a long term debt instrument or securried. bonds issue by the government do not have any risk of default the private sector company also issue bonds which are bonds debenture on india.


Why would investors buy junk bonds?

Firsly investors buy junk bond because they are cheaper.Although they have higher risk of default they also have higher return.


Which type of bond carries the least amount of risk?

US Treasury bonds are often considered the least risky type of bond because they are backed by the full faith and credit of the US government. This means that there is a very low risk of default when investing in US Treasury bonds.


What is the risk of a municipal bond?

---- Depending on the number of days to call (or maturity), coupon rate, and price paid, any bond will have a different yield to worst (the lower of the yield to maturity or yield to call). If you decide to hold the bond to the potential call date or maturity date, the only risk assumed will be the risk of the issuer's default or coupon reset. This risk is qualified by rating agencies, such as Standard & Poor's, with bond ratings like AAA or BB, etc. AAA municipal bonds are commonly insured against the issuer's default. If you want to sell a municipal bond before the maturity or call date, you additionally bear the market risk of price fluctuations. These fluctuations will be mainly due to expectations about future interest rate changes in the market (e.g., Fed Fund Rate by FOMC).