Question: How does bond rating affect a bond's yield? All bonds have the same yield regardless of their rating. Higher - rated bonds generally have higher
How does bond rating affect a bond's yield?
All bonds have the same yield regardless of their rating.
Higherrated bonds generally have higher yields to attract more investors.
Lowerrated bonds generally have higher yields to compensate investors for the higher risk.
Bond rating has no impact on a bond's yield.
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