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Q8 The diagram below shows the impact of Credit Ratings on Bond Yields A bond investor has a portfolio of AA, A, BBB and BB

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Q8 The diagram below shows the impact of Credit Ratings on Bond Yields A bond investor has a portfolio of AA, A, BBB and BB corporate bonds from the same sector. The investor expects a declining yield spread between "AA" and "A" rating, while a widening yield between "AA" and "BB" rating, though the yields for "A" rated bonds remain constant. In anticipation of such move, the investor will adjust the weighting of these bonds. Which would he "overweight", "underweight" and "neutral" based the expectation

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