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5. Why are bond ratings important? A. A bond rating is an indicator of its default risk, has a direct influence on the bonds interest
5. Why are bond ratings important? A. A bond rating is an indicator of its default risk, has a direct influence on the bonds interest rate and the firms cost of debt B. Higher-grade bonds have a higher required rate of return C. Institutional bond holders are usually not allowed to buy bonds who ratings are below BBB D. A and C above
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