Question #5
Reading: Reading 28 Credit Analysis Models
PDF File: Reading 28 Credit Analysis Models.pdf
Page: 2
Status: Correct
Correct Answer: B
Question
Higher rated bonds have lower:
Answer Choices:
A. returns
B. credit spreads
C. price
Explanation
Higher rated bonds have lower spreads. Price and return depends on other factors (e.g.,
coupon rate, maturity, risk-free rate).