As the Rating of a Bond Increases (For Example,from A,to

question 20

Multiple Choice

As the rating of a bond increases (for example,from A,to AA,to AAA) ,it generally means that ________.

• A)the credit rating increases,the default risk increases,and the required rate of return decreases
• B)the credit rating increases,the default risk decreases,and the required rate of return increases
• C)the credit rating increases,the default risk decreases,and the required rate of return decreases
• D)the credit rating decreases,the default risk decreases,and the required rate of return decreases

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Definitions:

Moral Idealism

Moral idealism is an ethical perspective that places great importance on individual rights and intentions, often prioritizing moral principles above practical considerations in decision-making processes.

Toxic Chemical

A substance that can cause harm or damage to living organisms and the environment upon exposure.

Bottled Water

Packaged water intended for drinking, sold in individual plastic or glass containers.

Stakeholder Responsibility

An organization's duty to act in the best interests of its stakeholders, including customers, employees, investors, and the environment.