A bond with a rating of_____ will have a _____ yield to maturity than the other bonds listed.
A) AAA, higher
B) BBB, lower
C) BB, lower
D) B, higher

Name: A bond with a rating of_____ will have a _____ yield to maturity than the other bonds listed. A) AAA, higher B) BBB, lower C) BB, lower D) B, higher
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Question

Quizplus · Accepted Answer

Bonds with lower credit ratings (like B) typically offer higher yields to maturity to compensate investors for the higher risk of default compared to bonds with higher credit ratings.

A Bond with a Rating Of_____ Will Have a _____

A Bond with a Rating Of_ Will Have a _