If a bond rating lowers, one can expect the bond's current yield to ____.

Name: If a bond rating lowers, one can expect the bond's current yield to ____.
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Question

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When a bond's rating is lowered, it typically means the issuer's creditworthiness has decreased, making the bond riskier to investors. To compensate for this increased risk, the bond's price usually drops, causing its current yield (interest payment divided by the current price) to increase, as the interest payment remains constant.

If a Bond Rating Lowers, One Can Expect the Bond's