A "Fallen Angel" Is a Bond That Has Moved From

question 112

Multiple Choice

A "fallen angel" is a bond that has moved from:

• A)being publicly traded to being privately traded.
• B)being a long-term obligation to being a short-term obligation.
• C)having a yield-to-maturity in excess of the coupon rate to having a yield-to- maturity that is less than the coupon rate.
• D)senior status to junior status for liquidation purposes.
• E)investment grade to speculative grade.

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Definitions:

Discount Rate

The interest rate charged to commercial banks and other depository institutions for loans received from the Federal Reserve's discount window.

Arbitrary Cutoff

A subjective point chosen without any specific criterion or rationale, often in data analysis or reporting.