Why, empirically, does a AAA-rated bond carry a lower yield compared to a B-rated bond? A. An
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Question:
Why, empirically, does a AAA-rated bond carry a lower yield compared to a B-rated bond?
A. An AAA-rated bond carries less risk.
B. At equal yields, an AAA-rated bond is less attractive to investors.
Related Book For
Bank Management and Financial Services
ISBN: 978-0078034671
9th edition
Authors: Peter Rose, Sylvia Hudgins
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