Which of the following statements is false? AAA-rated bonds have a lower probability of default than lower rated bonds. AAA-rated bonds provide higher level of creditor-protection than lower rated bonds. Government-issued bonds can be downgraded below AAA-rated. Prices of AAA-rated bonds do not fluctuate as much as the lower rated bonds. High risk bonds are also termed junk bonds.
Which of the following statements is false? AAA-rated bonds have a lower probability of default than lower rated bonds. AAA-rated bonds provide higher level of creditor-protection than lower rated bonds. Government-issued bonds can be downgraded below AAA-rated. Prices of AAA-rated bonds do not fluctuate as much as the lower rated bonds. High risk bonds are also termed junk bonds.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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5) I need help with a finance homework question, a multiple choice question.
Which of the following statements is false?
AAA-rated bonds have a lower probability of default than lower rated bonds.
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