n NISM Certifications
NSM General NISM
Medium

Credit spread is the price of ________.

Practice question from NISM Series IV - Mock Test 2 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Price risk

  2. B

    Reinvestment risk

  3. Credit risk

    Correct answer

  4. D

    All of the above

Why this is the answer

Credit spread reflects the extra yield demanded for credit risk.

Test yourself for real

Take a full General NISM mock test.

Same duration, same weighting, same difficulty distribution as the real exam — with explanations on every question.