If a Bond's Rating Improves, We Would Expect

question 14

Multiple Choice

If a bond's rating improves, we would expect:

• A) the demand for this bond to increase, all other factors constant.
• B) the demand for and the yield of this bond to increase, all other factors constant.
• C) the demand for this bond to decrease, and its yield to increase, all other factors constant.
• D) both the demand for and the price of the bond to decrease, all other factors constant.

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Definitions:

Isolationist Approach

A foreign policy strategy where a country minimizes its economic and political involvement with other countries to protect its sovereignty and independence.

Time of Troubles

A period of Russian history (1598–1613) characterized by famine, social upheaval, widespread suffering, and conflicts over succession.

Estates-General

The Estates-General was a legislative body in pre-revolutionary France made up of representatives from the three estates of the realm: the clergy, the nobility, and the common people.

Universal Suffrage

Universal suffrage is the right of all adult citizens, regardless of gender, race, or economic status, to vote in political elections.