If S&P Upgrades a Corporate Bond Its Yield Will _____

question 5

Multiple Choice

If S&P upgrades a corporate bond its yield will _____ and its risk premium will

• A) rise; rise.
• B) rise; fall.
• C) fall; rise.
• D) fall; fall.

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Definitions:

Time Frame

The period during which an event occurs or a condition exists.

Short-Term Debt

Financial obligations that are due for repayment within one year from the current date.

Debt Financing

Raising capital through borrowing money that must be repaid over time, with interest, typically through loans or the issuance of bonds.

Sound Financial Foundation

A stable and healthy financial status characterized by manageable debt levels, strong cash flow, and sufficient reserves for future needs.