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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