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Kipish [7]
3 years ago
9

Fitch Ratings a credit rating agency, recently downgraded Vermont's debt rating from AAA to AA, citing the state's economy and c

hanging demographics This change could supood:________.a. Increase the direct costs of the state's debt. b. Increase private investment c. Cause the vote to invest in more securities d. None of these likely to occur
Business
1 answer:
Natalija [7]3 years ago
5 0

Answer:

a. Increase the direct costs of the state's debt.

Explanation:

When a bond's rating is downgraded is a signal to the investors that investing in the bond now is riskier than it was prior to the rating downgrade, hence, a perceived higher risk using the risk/return relationship means that the bond issue would have to offer a higher return to entice the investors to invest in the bonds.

As a result, the higher required rate of return translates into a higher direct cost of the state's debt since their interest rate offered has increased

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3 years ago
1) The Johnson Manufacturing Co. has an annual operating budget of $750,000. Each year it budgets for the following expenses: po
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Answer:

See below

Explanation:

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7 0
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