The Credit Rating Assigned to a Bond Reflects the Probability

question 116

Multiple Choice

The credit rating assigned to a bond reflects the probability that:

• A)the bond's face value will increase above its market value.
• B)the bond will go into default.
• C)the company will earn extremely high returns on its bond's sinking fund investments.
• D)the bond's maturity value will become lower than its principal value.
• E)the firm will exercise a call provision on the bond.

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Definitions:

Mitosis Stages

The phases of cell division including prophase, metaphase, anaphase, and telophase, through which a single cell divides into two genetically identical daughter cells.

Interphase

The phase of the cell cycle where the cell prepares for division by replicating its DNA and increasing in size.

Chromosomes

Thread-like structures located within the nucleus of animal and plant cells, made of protein and a single molecule of deoxyribonucleic acid (DNA).

Cell Cycle

The series of phases that a cell goes through from one division to the next, including interphase and mitosis.