If a Bond Rating Moves from a BB to a BBB

question 116

Multiple Choice

If a bond rating moves from a BB to a BBB rating

• A)the bond will still be classified as junk.
• B)it must also move from a Ba to a Baa rating.
• C)the market yield on the bond will rise.
• D)the market price of the bond will rise.

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Definitions:

Cognitive Processing

Cognitive processing refers to the series of mental activities involved in acquiring, organizing, and understanding information, including perception, memory, and decision-making.

Cognitive Ability

The capacity of an individual to perform various mental activities related to learning, problem-solving, decision-making, and adapting to new situations.

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Culture

The sum of attitudes, customs, and beliefs that distinguishes one group of people from another, transmitted through language, material objects, ritual, institutions, and art, from one generation to the next.