Other Things Being Equal, the Yield Required on A-Rated Bonds

question 78

Multiple Choice

Other things being equal, the yield required on A-rated bonds should be ____ the yield required on B-rated bonds whose other characteristics are exactly the same.

• A) greater than
• B) equal to
• C) less than
• D) All of the above are possible, depending on the size of the bond offering.

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Definitions:

Public Policy

Public policy involves the creation of laws and regulations by organizations and governments.

Balance of Power

is a principle in international relations that aims to maintain stability by preventing any one state from becoming too dominant.

Power Resource Theory

A theory in political science and sociology that argues that the distribution of political power is determined by the distribution of resources within a society.

Distribution of Power

The way in which authority and control are allocated among individuals and groups within a society or organization.