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.
Answer: C
You might also like to view...
Through interactive marketing techniques, a company can create a brand community around each of its brands
Indicate whether the statement is true or false
The measurement of the effectiveness of new media is becoming ________
A) standardized B) more important C) less important D) impossible to analyze quantitatively E) impossible to analyze qualitatively