If a Bond's Rating Improves It Should Cause

question 85

Multiple Choice

If a bond's rating improves it should cause:

• A) The bond's price and yield to increase, all other factors constant
• B) The bond's price and yield to decrease, all other factors constant
• C) The bond's price to increase and its yield to decrease, all other factors constant
• D) The bond's price to decrease and its yield to increase, all other factors constant

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Definitions:

Electroconvulsive Therapy

A therapeutic approach that involves triggering seizures through electrical stimulation in patients to treat psychiatric illnesses.

Mood Disorder

A category of mental health disorders that primarily affect a person's emotional state, causing significant disruptions in daily life, including depression and bipolar disorder.

Behavioral Approach

A method of psychology that focuses on observing and analyzing how behavior is learned and how it can be modified.

Classical Conditioning

A learning process that occurs through associations between an environmental stimulus and a naturally occurring stimulus.