Question: Jiang Hu also made these two comments about credit analysis Comment 1: Credit rating changes usually lead changes in the market values of bonds. Comment

Jiang Hu also made these two comments about credit analysis Comment 1: Credit rating changes usually lead changes in the market values of bonds. Comment 2: The default rates by rating category (such as for rating BB) can vary considerably in different years. Are his comments correct? Both comments are correct. o Only comment 1 is correct. o Only comment 2 is correct. Jiang Hu also made these two comments about credit analysis. Comment 1: Higher priority of claim implies a higher recovery rate-lower loss severity-in the event of default. Comment 2: A B+ rating is a higher credit rating than a BBB- Are his comments correct? O Both comments are correct. o Only comment 1 is correct. Only comment 2 is correct. Jiang Hu made two comments about credit analysis. Comment 1: A narrowing of the credit spread increases a bond's holding period return. Comment 2: For high-yield bonds, credit risk can vary greatly depending on bonds' seniority ranking. Are his comments correct? O Both comments are correct. o Only comment 1 is correct. o Only comment 2 is correct

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