Why should I choose AnalystNotes?
Simply put: AnalystNotes offers the best value and the best product available to help you pass your exams.
Basic Question 9 of 9
A debt issuer may be upgraded or downgraded next year, and its credit spread may become smaller or bigger, affecting the value of the bond. "Typically", credit spread migration is likely to ______ the expected value on the bond.
B. not change
C. increase
A. reduce
B. not change
C. increase
User Contributed Comments 0
You need to log in first to add your comment.
I just wanted to share the good news that I passed CFA Level I!!! Thank you for your help - I think the online question bank helped cut the clutter and made a positive difference.
Edward Liu
Learning Outcome Statements
explain credit scores and credit ratings;
calculate the expected return on a bond given transition in its credit rating;
CFA® 2025 Level II Curriculum, Volume 4, Module 29.