If Moody's or Standard and Poor's Downgrades Its Rating on a Corporate

question 43

Multiple Choice

If Moody's or Standard and Poor's downgrades its rating on a corporate bond,the demand for the bond ________ and its yield ________.

• A) increases; decreases
• B) decreases; increases
• C) increases; increases
• D) decreases; decreases

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Definitions:

Marginally Ethical

Actions or decisions that are just barely within the bounds of accepted moral or ethical standards.

Ambiguous Negotiating

Involves discussions or bargaining processes where terms, conditions, or outcomes are not clearly defined or are open to interpretation.

Ethical Tactics

Strategies that adhere to moral principles and upright standards of conduct.

Self-Serving Process

An action or series of actions carried out for one's own benefit, often disregarding others.