If a bond rating moves from a BB to a BBB rating
A)the bond will still be classified as junk.
B)it must also move from a Ba to a Baa rating.
C)the market yield on the bond will rise.
D)the market price of the bond will rise.

Question

Quizplus · Accepted Answer

Moving from a BB rating to a BBB rating indicates an improvement in the issuer's creditworthiness, which would lead to an increase in demand for the bond, causing its market price to rise.

If a Bond Rating Moves from a BB to a BBB