Bond Ratings Are Positively Related to

question 35

Multiple Choice

Bond ratings are positively related to

• A) leverage.
• B) size.
• C) type of business.
• D) bond maturity.
• E) coupon rate.

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Definitions:

Third Industrial Revolution

The period characterized by the digital revolution and the use of electronics and information technology to automate production.

Law of Diminishing Returns

A principle stating that as one factor of production is increased while others are held constant, there comes a point at which the marginal gain in output begins to decrease.

Long Run

A period in which all factors of production and costs are variable, allowing for complete adjustment to changes.

Commercial Aircraft

Airplanes designed specifically for carrying passengers and/or cargo for commercial airlines.