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Can bond ratings be used as a measure of the bond's risk?
Yes OR true
Does a T-Bond have a default risk premium?
yes
Which bond would have a higher interest rate AA rated bond or a BB rated bond?
A BB should as it has more credit risk
What is the difference between interest rate risk and reinvestment rate risk?
Reinvestment risk When interest rates are declining, investors have to reinvest their interest income and any return of principal, whether scheduled or unscheduled, at lower prevailing rates.Interest rate risk When interest rates rise, bond prices fall; conversely, when rates decline, bond prices rise. The longer the time to a bond's maturity, the greater its interest rate risk.
Will a bond's yield to maturity increase or decrease if a bond is downgraded by rating agencies?
it will increase due to increase in risk. The bigger the risk the bigger the return and of course more chances of losing big as well.
What dashboards assesses risk based on the number of exceptions?
A/BO Dashboard
What should be done after assesses the hazards to determine the risk?
Implement controls
Who is the primary component that assesses the risk of the purchase card program at the user hierarchical level?
Dashboard
Does a stock or bond represent more risk to the company?
A share is more of a risk than a bond.
Can bond ratings be used as a measure of the bond's risk?
Yes OR true
Why would you check the rating of a bond?
There are two complimentary reasons to check a bond's rating. If you're a risk-averse investor, checking a bond's rating indicates the bond's risk of default. These guys look for "investment grade" bonds. If you're an aggressive investor, risk equals reward: the worse a bond is, the more it pays.
How does the risk or return ratio of a government bond compare with that of other types of investments?
The risk of a government bond is minimal, though the return from the government bond is very low compared to other lucrative bonds available in the market.When you opt for more return, there is more risk. Whereas though in government bond, the return is low, your investment is well secured and risk ratio is almost nil.
What type of bond has the highest risk?
High risk bonds are called junk bonds.
Does a T-Bond have a default risk premium?
yes
What test assesses the hearing in both ears?
The test assesses the hearing in both ears
What type of bond is a junk bond?
A junk bond is one which is of very high risk. This type of bond will mean that a person may never get the money back which they invest into the bond itself.
Why is a bond with a higher interest rate often considered a higher risk investment?
Bonds with a higher interest rate are often considered a higher risk investment because when interest rates rise, bond prices fall; conversely, when rates decline, bond prices rise. The longer the time to a bond's maturity, the greater its interest rate risk.
