The Higher the Credit Rating Given to a Bond Issue

question 39

Multiple Choice

The higher the credit rating given to a bond issue:

• A) the higher the credit risk.
• B) the higher the yield.
• C) the lower the yield.
• D) the higher the country risk.

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Definitions:

Acupuncture

A form of alternative medicine and a key component of traditional Chinese medicine involving thin needles inserted into the body at specific points.

Endorphins

Endogenous substances that offer pain relief and increase pleasure sensations.

Agonists

Substances that activate neurotransmitter receptors, enhancing the natural activity of neurotransmitters.

Antagonists

These are substances or muscles that counteract or oppose the function or action of another—for example, a muscle that opposes the action of another muscle or a drug that blocks receptors for neurotransmitters.