hen a corporate bond receives a rating of "BBB" from a credit rating agency, how is this rating typically classified? O Subprime grade Investment grade O Junk grade O Speculative grade
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When a corporate bond receives a rating of "BBB" from a credit rating agency, how is this rating typically classified?
O Subprime grade Investment grade
O Junk grade
O Speculative grade
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- To provide credit rating in the bond market, Bonds are given rankings according to their investment quality, i.e., investment grade and non-investment grade. Which of the following is a measure of the highest investment grade bond? ABC Bbb AAA Ccc- None of the above.Bonds that are rated less than investment grade by bond-rating agencies is: a. Sovereign bonds b. Corporate bonds c. Junk bonds d. Contingency bondsCorporate bonds that receive a ____ rating from credit rating agencies are normally placed at ____ yields. A higher; lower B higher; higher C lower; lower D lower; higher
- A triple B bond (BBB) according to DBRS is rated as which of the following? A. Investment grade (adequate credit quality) B. The highest quality on average C. Junk bond grade (very highly speculative) D. Default status gradeBond rating agencies like Moody's and Fitch specialize in: O A. guaranteeing a specific interest rate payment by bond issuers to investors O B. assessing the liquidity risk of issuers. OC. assessing the credit and default risk of issuers. O D. assessing the credit, default and liquidity risk of issuers.Nominal interest rate of a corporate bond includes all of the following components EXCEPT _____. Group of answer choices a. real risk-free interest rate b. expected inflation c. unexpected inflation d. credit risk premium
- Which of the following factors are included in the rating analysis of a corporate bond? I. the issue's indenture provisions II. the liquidity position of the issuing company III. the issuing company's relative debt burden IV. the stability of the company's earnings Question content area bottom A. I and II only B. I, II and III only C. II, III and IV only D. I, II, III and IVSerial bonds are: Select one: a. Bonds issued below their face value b. Bonds that mature in installments c. Bonds issued by Quaker Oats d. Bonds backed by collateral e. Bonds with greater riskWhich of the following bond is the safest? Treasury Bonds Corporate Bonds Savings Bonds
- Which of the following types of debt securities protect investors against interest rate risk? a. extendible notes b. floating rate bonds c. floating rate bonds and extendible notes d. original issue deep discount bondsWhat is the A (single-A rated corporate bond) Default Risk Premium (rdp)?What exactly does the coupon rate on a bond relate to? What range of S&P credit ratings are assigned to investment grade bonds?