- CFA Exams
- CFA Level I Exam
- Topic 3. Corporate Issuers
- Learning Module 6. Capital Structure
- Subject 4. Optimal Capital Structure
CFA Practice Question
The cost of debt increases most significantly when a bond rating changes: A. from AAA to AA.
B. from A to B
C. from BB to AA
Correct Answer: B
The cost of debt increases significantly when a bond rating drops from investment grade (BBB or higher) to speculative grade.
User Contributed Comments 0
You need to log in first to add your comment.