ICMA Exam FMFQ Topic 2 Question 15 Discussion

Actual exam question for ICMA's Financial Markets Foundation Qualification exam

Question #: 15
Topic #: 2

When a rating agency is assessing a corporate bond rating/ which of the following will they take into consideration in giving their rating?

AThey assume all bonds will repay and so ignore the probability of default

BThey look at the severity of potential loss without considering the probability of default

CThey consider probability of default but must always assume 100% loss

DThey take into consideration both probability of default and specific severity of potential loss

Show Suggested Answer

Suggested Answer: D

by Louvenia at May 04, 2022, 09:02 AM

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