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Bonds with relatively low risk of default are called securities and have a rating of Baa r BBB a above bonds with ratings below

Bonds with relatively low risk of default are called securities and have a rating of Baa (or BBB) a above; bonds with ratings below Baa (or BBB) have a higher default risk and are called A) investment grade; lower grade C) high quality; lower grade B) investment grade; junk bonds D) high quality; junk bonds 2) Which of the following bonds are considered to be default-risk free? A) municipal bonds C) AAA rated bonds E) None of the above are considered default-risk free. B) investment-grade bonds D) junk bonds

Jun 06 2020 View more View Less

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