Which of the Following Is Most Likely to Occur Immediately

question 10

Multiple Choice

Which of the following is most likely to occur immediately following the announcement that the rating on a corporate bond has been lowered to junk status?

• A)The yield-to-maturity on the bond will decline.
• B)The price of the bond will decline.
• C)The price of the bond will increase
• D)More than one of these
• E)None of these

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Definitions:

Standard Deviation

A statistical measure that quantifies the amount of variation or dispersion of a set of data values from the mean value.

Percentile Score

The percentage of people someone scores higher than on a scale or test; a score at the 90th percentile means someone scores higher than 90% of the people who took the scale.

Normal Distribution

A symmetrical bell-shaped distribution in which most of the data points cluster around the mean, with decreasing frequency toward the tails.

Mode

The value that appears most frequently in a given set of data, representing the most common outcome within that data set.