1. a credit downgrade typically results in...... interest rate for new debt. a) higher b)lower c) no change d) not enough information to tell
2. There is an....relationship between the price of an outstanding bond and market interest rate. A) inverse b) positive 3) direct d) none of the above
3. the greater the vocality of earnings the..... the bond rating when everything else is held constant. A) lower b)higher c) there is no relationship between earnings and bond rating d0 volatility is irrelevant when evaluating earnings.