When One of the Major Bond-Rating Services Downgrades a Bond

question 31

True/False

When one of the major bond-rating services downgrades a bond rating,the market price of that bond generally falls.

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Definitions:

Contingency

A future event or circumstance that is possible but cannot be predicted with certainty, often requiring flexible planning or preparation.

Need for Achievement

A psychological trait that drives an individual to pursue and attain goals, often related to personal accomplishment and success.

Behavioral Perspective

An approach to understanding human behavior that focuses on observable behaviors, emphasizing the influence of the environment on actions.

Path-Goal Leadership

A leadership theory that suggests a leader's behavior is motivated by the desire to meet followers' needs and guide them towards achieving their goals.