Describe reason for bond to receive credit rating upgrade

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Reference no: EM131504311

1. If Bob and Judy combine their savings of $1,800 and $600, respecively, and deposit this amount into an account that pays 8% annual interest, compounded monthly, what will the account balance be after 4 years?

2. Which of the following events would best describe the reason for a bond to receive a credit rating upgrade:

A. The Federal Reserve lowered interest rates (parallel)

B. The bond’s duration changed from 4 to 5

C. The bond’s credit spread decreased

D. The bond’s credit spread increased

Reference no: EM131504311

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