answersLogoWhite

0


Best Answer

Nothing, but its coupon rate would likely decrease as it is now considered a riskier asset.

User Avatar

Wiki User

12y ago
This answer is:
User Avatar

Add your answer:

Earn +20 pts
Q: What happens to a bond's yield to maturity if investors learn that the bonds are subordinated to another debt issue?
Write your answer...
Submit
Still have questions?
magnify glass
imp
Related questions

What happens if I can't payoff my car by the maturity date?

get repossed


What happens when a yield to maturity is less than the yield to call?

The issuer will call the bonds and issue new bonds to the maturity date.


What happens to leaves in the summer?

They reach there full maturity and are in full bloom.


What happens when you out live life insurance policy?

Well, if it is a Term Assurance Policy, there is no maturity benefit. However, in Endowment Policy, you are of course entitled to maturity benefit.


What happens to the female marijuana flower at maturity?

Female plants die after dropping the mature seeds.


What happens to the sub-prime mortgage bonds when people begin to default on loans?

Investors lose their investment.


What happens to Gold prices if Greece defaults?

If Greece defaults gold will FALL as investors sell risk assets in order to raise cash.


If gravitational force pulls objects towards the Earth how is it possible for the liquid to move up the paper in chromatography?

That happens when there is another, more powerful force.That happens when there is another, more powerful force.That happens when there is another, more powerful force.That happens when there is another, more powerful force.


Can the onset of menstruation be prolonged in kids?

No, not at all. when they hit maturity it happens. why would you ask a question like that? you sound like a child molester.


What is another name for occurs?

another word for occurs is happens.


If a bond price increases what happens to yield to maturity?

The YTM on a Bond versus it's Price is inversely related. Thus when the Price of the Bond Increases, the YTM Decreases.


What happens when one object is in the shadow of another?

its in the shadow of another