Sản phẩm & Rủi roCâu 46 / 398
If a rating agency downgrades a company's bonds, the most likely immediate effect on those existing bonds is that their:
a.Prices rise as demand increases
b.Prices fall and their yields rise
c.Coupon rates automatically increase
d.Maturity dates are shortened
Giải thích
A downgrade signals higher credit risk, so investors demand a higher yield, which pushes the existing bonds' prices down. Coupons are fixed and do not change, and a downgrade does not shorten maturity.
Luyện miễn phí toàn bộ 398 câu hỏi — không cần đăng ký.
Câu hỏi liên quan cùng chủ đề
- Duration is a measure that helps investors estimate:
- Which of the following bond ratings represents the LOWEST credit risk?
- The line between 'investment grade' and 'non-investment grade' (high-yield) bonds generally falls at:
- Credit (default) risk refers to the possibility that:
- An investor holds long-term bonds and worries that rising market interest rates will reduce their price. This concern describes:
- When interest rates fall, an investor who owns a callable bond faces the risk that the bond will be called and the proceeds must be reinvested at lower rates. This combined concern is BEST described as:
Cập nhật gần nhất: · quy trình kiểm tra
Đội Ngũ Biên Tập PrepPass · Đối chiếu với FINRA Securities Industry Essentials (SIE) Exam · Quy trình kiểm tra