The biggest risk with foreign pay bonds issued by the german government is the risk of default. a. true b. false

1 answer:

6 0

The statement is true, biggest risk with foreign pay bonds issued by the German government is the risk of default.

Risk Of Default

Currency risk is not limited to holding a foreign currency bond issued by a foreign entity. It exists whenever an investor owns a bond denominated in a currency other than the investor's home currency, regardless of whether the issuer is a domestic institution or a foreign entity. If a lender considers you a high default risk, the rates and terms you'll qualify for may be affected. It may even result in a loan denial. Default risk does not only apply to borrowers seeking to obtain loans. It also pertains to companies that issue bonds and their ability to make interest payments on these bonds.

Learn more about the Risk of Default: brainly.com/question/1316777

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