JUL. ALempt 1 Previous Page Next Page Page 14 of 34 Question 14 (1 point) A company has just received a credit rating upgrade. What impact will this likely have on the company's ability to raise funds? a) It will have to pay a higher coupon rate on its new bonds as investors know it is a successful company. Ob) It will be able to pay its bonds off faster as they can lower the coupon rate on their existing bonds. c) It will have a harder time issuing equity as investors will expect a higher return. d) It will be able to pay a lower coupon rate on its new bonds as it is seen as a more creditworthy company. Previous Page Page 15 Previous Page Page 16 of 34 Question 16 (1 point) Assume that the US dollar is rising in value against most other major currencies and this has become a concern to the US government. What is the quickest, short-term action that the US Federal Reserve ie central bank) could take to try weaken the US dollar? Question 15 (1 point) Bond Rating Services perform all of the following functions EXCEPT: a) do credit analysis on fixed income security issuers b) provide an independent and objective assessment of fixed income secu c) recommend fixed income securities for purchase or sale a) Reduce interest rates. Ob) Buy US dollars in the open market. Raise interest rates. d) classify fixed income securities anywhere within a range from investme grade to speculative (ie junk) d) Sell US dollars in the open market. PIC.COLLAGE Next P Previous Pape Previous Next Page Page 16 of 34