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

question 143

Multiple Choice

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

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

---

Definitions:

Challenging Situation

A scenario that poses difficulties or obstacles, demanding solutions or adaptations to overcome it.

Risky Decisions

Choices made under conditions of uncertainty that have the potential for significant positive or negative outcomes.

Simple Obstacles

Easily identifiable and straightforward hindrances or challenges that can impede progress or achievement of a goal.

Learning from Experience

The act of gaining knowledge or skill by directly engaging in and reflecting upon specific actions or events.