Answer:
C. The coupon rate on these bonds would have been higher if Standard and Poor's, Moody's, and Fitch had assigned lower credit ratings
Explanation:
Assume that in January 2017, Vivendi announced a €1.2 billion bond issuance. The bonds have a coupon rate of 6.75% payable semiannually. Assume the bonds have been assigned credit ratings of BBB (stable outlook) by Standard and Poor's, Baa2 (stable outlook) by Moody's, and BBB (stable outlook) by Fitch.
Which of the following is not true? The coupon rate on these bonds would have been higher if Standard and Poor's, Moody's, and Fitch had assigned lower credit ratings.
The answer is macroeconomics
Well a bond is a government loan where they take ur money and pay u back with interest usually low interest tho
Answer:
B) higher than the interest rate.
Explanation:
In the case when the business wants to borrow for a project so the rate of return would be greater than the rate of interest
And in the case when the rate of interest is lesser than the expected return so the investment would look attractive due to this there is a rise in the borrowing for that investment
Hence, the option b is correct
