Which of the Following Statements Is NOT Correct

question 16

Multiple Choice

Which of the following statements is NOT correct?

• A)The more-likely is default on a security,the higher is its yield.
• B)The better is the credit rating of a security,the lower is its yield.
• C)The higher is the probability of repayment on a bond,the higher is its price.
• D)The higher is the default risk of a bond,the higher is its price.

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Definitions:

Disaffirm The Contract

The legal act of a party declaring a contract void and relinquishing all rights and obligations under that contract.

Intoxicated

The condition of being under the influence of alcohol or drugs to the extent that mental and motor skills are impaired.

Market Value

The amount of money a willing buyer would pay a willing seller for goods, services, or assets in a competitive marketplace.

Minor

A person who is under the legal age of adulthood, typically considered to be under 18 years old in many jurisdictions.