Why, empirically, does a AAA-rated bond carry a lower yield compared to a B-rated bond? A. An

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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.

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Bank Management and Financial Services

ISBN: 978-0078034671

9th edition

Authors: Peter Rose, Sylvia Hudgins

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Posted Date: Jun 14, 2019 09:45 AM

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Why, empirically, does a AAA-rated bond carry a lower yield compared to a B-rated bond? A. An

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Correct option is A An AAAra... View the full answer

Bank Management and Financial Services

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