If a Bond Rating Lowers, One Can Expect the Bond's

question 135

Multiple Choice

If a bond rating lowers, one can expect the bond's yield to maturity to ____.

• A)remain the same
• B)increase
• C)decrease
• D)equal the coupon rate

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Definitions:

Implicit

Something implied or understood though not directly expressed.

Explicit

Something stated clearly and in detail, leaving no room for confusion or doubt.

Metaphorical

Pertaining to or characterized by metaphor; using figures of speech that imply a comparison between unlike entities.

Literal

Pertains to the exact meaning of words or texts, without interpretation or exaggeration.