A manufacturing company receives a ratings upgrade and the price increases on its fixedrate bond. The price
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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.
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A credit spread is the difference between the yield ...View the full answer
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