If a bond's rating declines,the interest rate demanded by investors,called the required return,also decreases.

Name: If a bond's rating declines,the interest rate demanded by investors,called the required return,also decreases.
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If a bond's rating declines, it means that the risk associated with the bond has increased. As a result, investors will demand a higher interest rate, or required return, to compensate them for the increased risk. Therefore, the statement is false.

If a Bond's Rating Declines,the Interest Rate Demanded by Investors,called