The higher the credit rating, the __________ the bond, the __________ the default probability, and the __________ the expected return.

The yield to maturity on a bond   a is fixed in the indenture. b is lower for higher-risk bonds. c is the required return on the bond. d is generally equal to the coupon interest rate.

Bond ratings predict the probability of default. Select one: True OR False

Bonds that have investment-grade ratings from sources such as S&P tend to have higher interest (coupon) rates due to higher default risk. True False

can you may this calculations for each of my bonds?. For each of your bonds, calculate expected defavvult percent loss as = default probability* (1 - recovery rate ). You will need to use the default rates and recovery rates that match each bond's rating. 4. Calculate the overall expected loss to your portfolio as the weighted average of the expected default percent loss

Use the following information to answer this question. In your answers, ignore the negative sign, if any.    Yield on Bond A Yield on Bond B Yield on Bond C 5.50% 6.50% 3.50%   a) What is the yield spread between bonds A and B (in basis points)?  b) What is the relative yield spread between bonds B and C? Bond C is your basis.  c) What is the yield ratio between A and C? Bond C is your basis.

All else the same, a will decrease the required return on a bond. Select one: O a. sinking fund O b. increase in the size of a bond issuance O c. lower bond rating O d. call provision O e. increase in inflation

please explain whether it is true or false

Risk premium is also called A• Risk addictive B• Credit spread C• Debt spread D• Risk spread

What is the greatest risk in mortgage banking? Group of answer choices Price Risk Fallout Risk Interest Rate Risk Pipeline Risk