Once a Bond Rating Is Assigned, It

question 104

Multiple Choice

Once a bond rating is assigned, it:

• A) never changes over the life of the bond.
• B) can change as the financial position of the issuer changes.
• C) can only change if the rating change is approved by the securities and exchange commission.
• D) can change on the next bond from the issuer but is fixed for the current bond.

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Definitions:

Stimuli Organizing

The process of arranging or structuring sensory input into a coherent and understandable framework.

Linear Perspective

A form of perspective in art and drawing where parallel lines converge at a single point on the horizon to create the illusion of depth on a flat surface.

Depth Perception

The ability to perceive the visual world in three dimensions and to judge the distance of objects.

Clairvoyance

The supposed ability to gain information about an object, person, location, or physical event through means other than the known human senses.