How Is the Relationship Between a Bond's Credit Rating and Its

question 52

Multiple Choice

How is the relationship between a bond's credit rating and its interest rate best defined?

• A)inverse relationship
• B)direct relationship
• C)unrelated
• D)logarithmic

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Definitions:

Time Series

A series of data points gathered or documented at consecutive time periods.

Nominal

Nominal refers to data that is categorized without a natural order or rank, simply identifying different types based on names or labels.

Ethnicity

Ethnicity refers to the social group a person belongs to, and identifies with, often based on cultural, religious, or national characteristics.

Interval Data

A type of data where the order of the data points is significant and the distance between them is equal and meaningful; however, it does not have a true zero point.