About Bond rating a. poor bond rating is caused by the low counpon rate and thus...
| About Bond rating | |||||||||||
| a. | poor bond rating is caused by the low counpon rate and thus the YTM is low | ||||||||||
| b. | secured bonds should have better rating than unsecured bond of the same firm | ||||||||||
| c. | a bond without sinking fund should a better rating. | ||||||||||
| d. | a callable bond should have lower yield. | ||||||||||
| e. | a convertible bond should have higher yield than a non convertiable one. | ||||||||||
Homework Answers
rate positively .. let me know if you need any clarification .
correct answer is option = secured bonds should have better rating than unsecured bond of the same firm
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About Bond rating
a.
poor bond rating is caused by the low counpon rate
and thus...
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