CFA Practice Question

There are 266 practice questions for this study session.

CFA Practice Question

Which statement is false?

A. The higher the credit rating, the greater the rating stability.
B. Credit spreads tend to lag behind credit ratings.
C. In a bankruptcy, junior creditors may receive more consideration than they are legally entitled to.
Correct Answer: B

Credit spreads move more quickly than credit ratings of bonds.

Senior creditors may want to settle with junior creditors.

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