Generally with Bond Ratings, the Higher the Rating, the ________

question 163

Multiple Choice

Generally with bond ratings, the higher the rating, the ________ the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

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Definitions:

Delphi Technique

A structured communication technique originally developed as a systematic, interactive forecasting method which relies on a panel of experts.

Groupthink

A psychological phenomenon in which the desire for harmony or conformity in a group results in an irrational or dysfunctional decision-making outcome.

Operational Index

A measure that provides insights into the efficiency, performance, or productivity of an organization's operations.

Demand for Labour

The total amount of workers that employers want to hire at a given wage rate and period.