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A insurance company owns 10 year bonds in DEF company which announces an acquisition that causes its bond rating to change from BBB to B.

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A insurance company owns 10 year bonds in DEF company which announces an acquisition that causes its bond rating to change from BBB to B. What happens to the price of DEF bonds? Not enough information given No change in price The price goes down. The price goes up QUESTION 28 What is the biggest risk in a FNMA Mortgage Passthrough Security? Prepayment risk Credit Risk Liquidity Risk Currency Risk

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