Bond X has a higher yield than Bond Y, what can be the reason? A Bond X has a longer history of selling to customers on credit B Bond X is issued by a service oriented company while bond Y is from a manufacturer C Bond X is in India, where the inflation rate is higher than the US, where Bond Y is issued D Bond X has a single A credit rating and Bond Y has a BBB credit rating
Bond X has a higher yield than Bond Y, what can be the reason? A Bond X has a longer history of selling to customers on credit B Bond X is issued by a service oriented company while bond Y is from a manufacturer C Bond X is in India, where the inflation rate is higher than the US, where Bond Y is issued D Bond X has a single A credit rating and Bond Y has a BBB credit rating
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter27: Multinational Financial Management
Section: Chapter Questions
Problem 12P
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Question
Bond X has a higher yield than Bond Y, what can be the reason?
- A
Bond X has a longer history of selling to customers on credit
-
BBond X is issued by a service oriented company while bond Y is from a manufacturer
- C
Bond X is in India, where the inflation rate is higher than the US, where Bond Y is issued
-
DBond X has a single A credit rating and Bond Y has a BBB credit rating
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