Which One of the Following Is Most Apt to Be

question 38

Multiple Choice

Which one of the following is most apt to be correct for a CCC-rated bond, compared to a BBB-rated bond?

• A)the CCC bond will have a variable-coupon rate.
• B)the CCC bond will have a shorter term.
• C)the CCC bond will offer a higher promised yield to maturity.
• D)the CCC bond will have a higher price for the same term.

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Definitions:

Acceptance

The agreement to the terms of an offer, contract, or document, thereby creating a legally binding obligation.

Income

The total amount of money received by a person or company during a certain period, usually from work, investments, or business activities.

Loss

A financial condition where total expenses exceed total revenues, resulting in a negative profit.

Acceptance

The act of receiving or approving something, often used in the context of agreements or contracts.