Economics

posted by .

What is usually the relationship between a bond’s rating and the interest rate a company pays to buyers?

A. The rating is the same as the rate.

B. The higher the rating, the lower the rate.

C. There is no relationship.

D. The higher the rating, the higher the rate.

  • Economics -

    I'll be glad to check your answer.

  • Economics -

    B?

  • Economics -

    Right.

Respond to this Question

First Name
School Subject
Your Answer

Similar Questions

  1. Finance

    Which of the following would be most likely to increase the coupon rate that is required to enable a bond to be issued at par?
  2. Finance

    If a financial institution is backed by any government program or indirect guarantee, any bonds purchased must be "rated" at investment grade or better. The rating agency is a third party with no connections with the bond issuer or …
  3. stats

    Our students were asked to rate their admiration of Hillary Rodham Clinton on a scale of 1 to 7. They were asked to rate their Jennifer Lopez and Venus Williams on a scale of 1 to 7. The mean rating of Clinton was 4.06 with a standard …
  4. Financial Management

    As the financial analyst for a corporation, you are evaluating various types of bonds. The firm is gathering research about bonds currently issued. Understanding how to properly value a vanilla bond (a plain bond) is essential for …
  5. math

    Our statistics students, as noted in Exercise 6.32, were asked to rate their admiration of Hillary Rodham Clinton on a scale of 1 to 7. They also were asked to rate their admiration of Jennifer Lopez and Venus Williams on a scale of …
  6. statistics

    Our statistics students, as noted were asked to rate their admiration of Hillary Rodham Clinton on a scale of 1 to 7. They also were asked to rate their admiration of Jennifer Lopez and Venus Williams on a scale of 1 to 7. As noted …
  7. math

    Our statistics students, as noted were asked to rate their admiration of Hillary Rodham Clinton on a scale of 1 to 7. They also were asked to rate their admiration of Jennifer Lopez and Venus Williams on a scale of 1 to 7. As noted …
  8. Need help by tonite Finance

    15. Bond ratings and prices A corporate bond with an 8.5 percent coupon has 10 years left to maturity. It has had a credit rating of A and a yield to maturity of 10 percent. The firm has recently gotten into some trouble and the rating …
  9. consumers

    you go to the whome insurance company for auto insurance the charge $525.00 as a base rate for six months of insurance for your vehicle they offer a 15% discount for safe driver habits and a 10% discount for an excellent credit rating …
  10. political science

    The book has a chart listing the public approval of several things/people/events and compares it to the approval rating of Congress. Who/what has a LOWER approval rating than Congress?

More Similar Questions