A manufacturing company receives a ratings upgrade and the price increases on its fixedrate bond. The price

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A manufacturing company receives a ratings upgrade and the price increases on its fixedrate bond. The price increase was most likely caused by a(n):

A. Decrease in the bond’s credit spread.

B. Increase in the bond’s liquidity spread.

C. Increase of the bond’s underlying benchmark rate.

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Fixed Income Analysis

ISBN: 9781119850540

5th Edition

Authors: Barbara S. Petitt

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Question Posted: Nov 08, 2023 03:41 AM

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A manufacturing company receives a ratings upgrade and the price increases on its fixedrate bond. The price

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A credit spread is the difference between the yield ...View the full answer

Fixed Income Analysis

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