Question
When the credit rating of a company changes from AA to A, which of the following statement is true? The default probability decreases The cost
When the credit rating of a company changes from AA to A, which of the following statement is true?
| The default probability decreases | ||
| The cost of debt decreases | ||
| The expected cost of bankruptcy increases | ||
| Bond investors demand lower returns |
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Focus On Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
3rd Edition
0073382426, 9780073382425
