If Moody's downgrades a bond,which of the following would fall?

Question

Quizplus · Accepted Answer

If Moody's downgrades a bond, it is an indication that the bond issuer's creditworthiness has deteriorated, making the bond riskier. This will result in investors demanding a higher yield to compensate for the increased risk. As a result, the market price of the bond will fall. The face value, coupon rate, and current yield will not be directly affected by the downgrade.

If Moody's Downgrades a Bond,which of the Following Would Fall