The Bond Rating of a Security Reflects The

question 50

Multiple Choice

The bond rating of a security reflects the:

• A) size of the coupon payment relative to the face value.
• B) likelihood the lender/borrower will be repaid by the borrower/issuer.
• C) return a holder is likely to receive.
• D) size of the coupon rate relative to other interest rates.

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Definitions:

Parent Company

A corporation that owns enough voting stock in another firm to control management and operations by influencing or electing its board of directors.

Business-Format Franchising

A franchising arrangement where the franchisee is given not just the rights to sell a product or service, but also the detailed method to conduct the business.

Product-Distribution

Product-distribution involves the process of making a product or service available for the consumer or business user that needs it, which can include warehousing, logistics, and retailing.

Geographic Region

An area defined by physical, natural, human, or cultural characteristics that distinguish it from other areas.