What is the relationship between a corporate bond rating and a risk premium? There is no relationship

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What is the relationship between a corporate bond rating and a risk premium?

		There is no relationship between corporate bond rating and risk premium.
		The relationship is discrete binary: an investment-grade bond rating is associated with a higher risk premium, a junk-grade bond rating is associated with a lower risk premium.
		The relationship is inverse: a higher corporate bond rating is associated with a lower risk premium.
		The relationship is linear: a higher corporate bond rating is associated with a higher risk premium.
		The relationship is quadratic: a higher corporate bond rating is associated with a much higher risk premium.

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College Accounting Chapters 1-30

College Accounting Chapters 1-30

ISBN: 978-0077862398

14th edition

Authors: John Price, M. David Haddock, Michael Farina

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Posted Date: Oct 04, 2022 08:30 AM

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