A manufacturing company receives a ratings upgrade and the price increases on its fixedrate bond. The price

Question:

A manufacturing company receives a ratings upgrade and the price increases on its fixedrate bond. The price increase was most likely caused by a(n):

A. Decrease in the bond’s credit spread.

B. Increase in the bond’s liquidity spread.

C. Increase of the bond’s underlying benchmark rate.

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For answer-question

Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

See More Books

Question Posted: Nov 08, 2023 03:41 AM

See More Questions

Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
1. How strong are the competitive forces confronting J. Crew in the market for specialty retail? Do a [Michael Porter] five-forces analysis to support your answer. (see chapter 3 in the textfor...
American companies are starting to test the extent of their pricing power. Faced with rising costs for materials, transportation and workers, companies are charging more for products from metal...
Suggest a good synthetic method for preparing each of the following haloalkanes from the corresponding alcohols. CH3 H3C CI I () CH-CH-CH,CI (b) CH;CH,CHCH,Br () (d) CH;CHCH(CH3)2
1. What has a larger impact on Palmstars profits, delaying the 2000 c s introduction by 3 months or increasing the project s budget by 30 percent? 2. Are there other factors you would consider in...
On April 1, 2015, Pavlova Company received a condemnation award of $$410$,000 cash as compensation for the forced sale of the companys land and building, which stood in the path of a new highway....
How does make determine whether a target needs to be rebuilt?
A partial balance sheet and income statement for King Corporation follow: KING CORPORATION Partial Balance Sheet December 31, 2009 Assets Current assets: Cash .........................$ 33,493...
what are the " Data Types" in the relational model ? List the differences between "Domain and TYPE". (answer in 500 words atleast)
Empirical duration is likely the best measure of the impact of yield changes on portfolio value, especially under stressed market conditions, for a portfolio consisting of: A. 100% sovereign bonds of...
An investor purchases an annual coupon bond with a 6% coupon rate and exactly 20 years remaining until maturity at a price equal to par value. The investors investment horizon is eight years. The...
Glacier Ski and Sports operates in the highly seasonal ski and snowboard equipment manufacturing industry. Although Glaciers sales are highly seasonal, to obtain production efficiencies it produces...
Q3.two masses m and m are connected by a string pulled on horizontal smooth plane by an external force F as in figure .let tension T=8N,m-2kg and m= 3kg. Find the force F M T M F=?
A point charge Q moves on the x-axis in the positive direction with a speed of 220 m/s. A point P is on the y-axis at y = +10 mm. The magnetic field produced at the point P, as the charge moves...
Two cars are traveling at the same speed and start from two different positions. If the two cars are traveling at the same velocity, they must have the same mass have the same density be moving in...
A point charge of +Q is placed at the center of a square, and a second point charge of -Q is placed at the upper-left corner. It is observed that an electrostatic force of 4.0 N acts on the positive...
A body of mass 3 kg moves in a (counterclockwise) circular path of radius 10 meters, making one revolution every 6 seconds. You may assume the circle is in the xy-plane, and so you may ignore the...
Southwestern Fashions, Inc. which uses a job-order costing system had two jobs in process at the start of the year: job no. 101 ($168,000) and job no. 102 ($107,000). The following information is...
Four GWU students have been selected to taste food sold by 3 different food trucks labeled as food truck A, B and C on H & 22nd Streets every Monday for 3-weeks. For each student, food trucks are...
Suppose a stock had an initial price of $84 per share, paid a dividend of $1.65 per share during the year, and had an ending share price of $93. Compute the total percentage return?
Suppose you bought a bond with a coupon rate of 5.6 percent one year ago for $985. The bond sells for $1,015 today. The bond pays annual coupons. a. Assuming a $1,000 face value, what was your total...
What was the arithmetic average annual return on large-company stocks from 1926 through 2015: a. In nominal terms? b. In real terms?
On January 1, 2024 Sea Limited purchased 40% of the common shares Shore Ltd for $200,000 cash. Sea Limited has recorded the investment as a significantly influenced one; hence, they are using the...
The following information is taken from the 2015 annual report to shareholders of Herme-Finnet (HF) Company. For Fiscal 2015 For Fiscal 2014 Provision for doubtful accounts Accounts receivable, net...
Suppose that if your income increases by $100, all households in Normalia increase their expenses by $50. Instructions: Round your answers to one decimal place. The MPC in Normalia is: MPS in...

A manufacturing company receives a ratings upgrade and the price increases on its fixedrate bond. The price

Question:

Step by Step Answer:

A credit spread is the difference between the yield ...View the full answer

Fixed Income Analysis

Students also viewed these Business questions