Under Which Conditions Will an Investor Demand a Larger Return

question 124

Multiple Choice

Under which conditions will an investor demand a larger return (yield) on a bond?

• A) The bond issue is upgraded from A to AA.
• B) The bond issue is downgraded from A to BBB.
• C) Interest rates decrease due to decline in inflation.
• D) None of the conditions will cause an increase in the bond's yield.

---

Definitions:

Secure Attachment

A healthy emotional bond between a child and their caregiver, characterized by trust and a sense of safety.

Fearless

Lacking fear; bold or brave in the face of potential danger, risk, or intimidation, often willing to take on challenges without hesitation.

Cooley's Theory

A sociological perspective introduced by Charles Horton Cooley, stating that the self-concept is formed based on how individuals believe they are perceived by others, known as the "looking-glass self."

Sense of Agency

The feeling of control over actions and their outcomes, contributing to an individual's perception of being able to influence their own life and environment.