Asked by Karan Patel on Jul 14, 2024

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A restaurant chain announces declining revenues. What's the name of the type of risk that this news raises for holders of this chain's bonds? What does this news to do the interest rate on this chain's bonds?

Declining Revenues

A decrease in the amount of money received from sales or services over a period of time.

Interest Rate

The cost of borrowing money, typically expressed as a percentage of the amount borrowed, paid over a specific period.

Restaurant Chain

A series of restaurants owned by the same company or individual, offering the same or similar food and experiences across locations.

  • Differentiate among the various risk types linked to bonds.
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KH
Khanh HoangJul 17, 2024
Final Answer :
default risk, The interest rate rises.