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A bond's credit rating provides a guide to its price. In December, 2 0 2 0 , Aaa ( or AAA for S&P ) bonds
A bond's credit rating provides a guide to its price. In December, Aaa or AAA for S&P bonds yielded and Baa or BBB for S&P bonds yielded If some bad news causes a fiveyear bond to be unexpectedly downgraded from Aaa to Baa, what would be the likely effect on the bond price? Assume annual coupons Bond price will likely increase Bond price will likely not change Bond price will likely decrease
A bond's credit rating provides a guide to its price. In December, Aaa or AAA for S&P bonds yielded and Baa or BBB for S&P bonds yielded If some bad news causes a fiveyear bond to be unexpectedly downgraded from Aaa to Baa, what would be the likely effect on the bond price? Assume annual coupons
Bond price will likely increase
Bond price will likely not change
Bond price will likely decrease
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