If a Bond's Rating Improves, We Would Expect

question 67

Multiple Choice

If a bond's rating improves, we would expect:

• A) The demand for this bond to increase, all other factors constant
• B) The demand for and the yield of this bond to increase, all other factors constant
• C) The demand for this bond to decrease, and its yield to increase, all other factors constant
• D) Both the demand for and the price of the bond to decrease, all other factors constant

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Definitions:

Rationalism

A philosophy that emphasizes reason and knowledge acquisition through deductive reasoning and logical analysis, rather than empirical evidence.

Factual Analysis

Examination of data to discover verifiable facts and establish their validity.

Hypothesis

A testable prediction or statement about the relationship between two or more variables that can be tested through research.

Variables

Variables are characteristics or properties that can take on different values or categories in a research study, such as age, gender, income, etc., crucial for analyzing patterns and relationships.