Once a bond rating is assigned, it:
A) never changes over the life of the bond.
B) can change as the financial position of the issuer changes.
C) can only change if the rating change is approved by the securities and exchange commission.
D) can change on the next bond from the issuer but is fixed for the current bond.
Correct Answer:
Verified
Q10: Most commercial paper is:
A) issued with maturities
Q11: What is the highest bond rating assigned
Q12: The default-risk premium:
A) is negative for a
Q13: The risk spread:
A) is also known as
Q14: Bonds rated as "highly speculative" are:
A) rated
Q16: If a bond's rating improves it should
Q17: The risk spread is:
A) the difference between
Q18: Bonds issued by the U.S. Treasury are
Q19: The default-risk premium:
A) should vary directly with
Q20: The lowest rating for an investment grade
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