Which of the Following Is Likely to Be Correct for a CCC-Rated

question 52

Multiple Choice

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

• A) The CCC bond will sell for a higher price.
• B) The CCC bond will sell for a lower price.
• C) The CCC bond will offer a higher promised yield to maturity.
• D) The CCC bond will offer a lower promised yield to maturity.

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Definitions:

Probability

The measure of the likelihood that an event will occur, quantified as a number between 0 and 1, where 0 indicates impossibility and 1 indicates certainty.

Probability

An evaluation of the chance an event has to take place, using a scale from 0 to 1.

Probability Distribution

A mathematical function that describes the likelihood of obtaining the possible values that a random variable can assume.

Owns More Than One

Refers to an individual or entity possessing more than one of something, suggesting multiple ownerships.