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Basic Question 0 of 4

The higher the credit risk of a bond, ______.

I. the higher the required yield
II. the greater the volatility of its returns
III. the higher the liquidity risk

User Contributed Comments 2

User Comment
warnggg Why not C?
ahmed999 @WARNGGG because the liquidity risk is entirely different and not related by anyway to credit risk.
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Lina

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Learning Outcome Statements

explain approaches to forecasting a company's capital investments and capital structure

CFA® 2025 Level I Curriculum, Volume 3, Module 7.