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【FRM每日一题】一级:金融市场&估值

【FRM每日一题】一级:金融市场&估值

备考FRM一级  |  2015-10-28

  With respect to the effect on the price of a bond, which of the following statements is correct:

  A.the effect of a bond upgrade will be negative and about equal to that of a bond downgrade.

  B.the effect of a bond upgrade will be positive and weaker than the downward effect of a bond downgrade.

  C.the effect of a bond upgrade will have about the same negative effect, in absolute value terms, as a bond downgrade.

  D.the effect of a bond upgrade will be positive and stronger than the downward effect of a bond downgrade.

  Answer: B

  A bond's upgrade will have a positive effect on the bond's price, but the negative effect of a bond downgrade is generally stronger.

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