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Which value would be least likely for a BB-rated US Corporate bond? A price quote of 101:2 A current yield of 6% A yield of -
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A. a price quote of 101:2

A bond quoted at a price of 101:2 has a coupon rate that exceeds the market rate. Generally, BB-rated bonds are considered to be below investment grade indicating higher risk of default. Consequently, investors demand higher yields in such cases to cover the higher risk involved. Hence the BB-rated bonds have a higher coupon rate which exceeds the market rate. BB-rated bonds are called as junk bonds and this is reflected in their values.

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