A Bond That Is Generally Agreed to Have Higher Default

question 99

Multiple Choice

A bond that is generally agreed to have higher default risk will experience all of the following EXCEPT

• A) declining demand.
• B) declining supply.
• C) higher yield.
• D) lower price.

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Definitions:

Creditor Beneficiaries

Individuals or entities that benefit from a contract made between two other parties, particularly in their capacity to receive a debt payment.

Donee Beneficiaries

Third-party beneficiaries for whom a contract is made to benefit as a gift, giving them the right to enforce the contract against the promisor.

Assigned Donees

Individuals or entities designated to receive specific gifts or donations.

Donee Beneficiary

In contract law, a third party who benefits from a contract between two other parties, particularly when the benefit was intended as a gift.