If a Bond's Rating Improves It Should Cause the Bond's

question 116

Multiple Choice

If a bond's rating improves it should cause the bond's price:

• A) and yield to increase, all other factors constant.
• B) and yield to decrease, all other factors constant.
• C) to increase and its yield to decrease, all other factors constant.
• D) to decrease and its yield to increase, all other factors constant.

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Definitions:

Pressure Gradient

The physical quantity that represents the rate of pressure changes over a specified distance in a fluid medium.

Phloem

The plant's vascular system responsible for moving sugars and other substances produced during metabolism from the leaves downward.

Springwood

The portion of a tree's annual growth ring that is formed in the early part of the growing season, characterized by larger and less dense cells than those produced later in the season.

Conducting Cells

Cells in plants that form the tubes for transporting water, minerals, and nutrients, namely xylem and phloem cells.