Which of the following statements is NOT correct?
A)The more-likely is default on a security,the higher is its yield.
B)The better is the credit rating of a security,the lower is its yield.
C)The higher is the probability of repayment on a bond,the higher is its price.
D)The higher is the default risk of a bond,the higher is its price.

Question

Quizplus · Accepted Answer

Higher default risk typically leads to a lower bond price, as investors demand a higher yield to compensate for the increased risk.

Which of the Following Statements Is NOT Correct