Question
If a company's bond rating is downgraded by Moody's, what would happen to the YIELD of the existing bonds in the market? Goes Up to
If a company's bond rating is downgraded by Moody's, what would happen to the YIELD of the existing bonds in the market?
Goes Up to reflect a increased risk premium
It is a matter of chance and you cannot predict this.
I hate finance so I do not want to know
Goes down because people are disappointed
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Microeconomics
Authors: Glenn Hubbard, Anthony O'Brien
7th Edition
0134737504, 978-0134737508
