Investment grade rated countries (IG) have, typically, higher yields than high yield, HY, (AKA junk bonds...
Investment grade rated countries (IG) have, typically, higher yields than high yield, HY, (AKA junk bonds or speculative grade), since HY bonds' default probability is Lower than the IG's.
Group of answer choices
True
False
Homework Answers
False.
Investment grade rated countries are typically countries with better finances and hence lower default probability. Lower default probability implies, lower risk and hence, the returns associated with them are also lower. Investment grade ratings are typically BBB- or higher.
However, junk bonds or high yield bonds, have a higher probability of default and hence carry higher risk, which would require investor to be compensated for higher return. Junk grade ratings are typically BB+ or lower.
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Investment grade rated countries (IG) have, typically, higher
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narrowing/widening
higher/lower
low/high
rise/fall
decreasing/increasing
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The choices for the blanks, in
order, are:
fall/rise
narrowing/widening
higher/lower
low/high
rise/fall
decreasing/increasing
Corporate-Bond Issuers Race to the Market as U.S. Yields Approach Record Low On April 25, 2011, the Fed announced that short-term interest rates would be kept near zero through late 2014. Because corporate bonds are indexed to Treasury yields and the Treasury yield hit nearly all-time lows, issuing conditions became conducive for investment-grade borrowers. Europe's debt crisis fueled the demand for relatively safer U.S. securities, and...
Please help! Thank you!
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- - higher interes in the long-term where My Pe Theory Market Netto They The Curve Theory None of the above fequitymarkets are strong form Micient Investors should chose quity portfolios randomly Investors should put money only in professionally managed equity portfolios Investors should not invest in equity securities Investors should invest in stocks with high P raties Investors should form portfolios that are well diversified and appropriate for their own levels of risk tolerance TO To apply the Dividend...
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