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Bonds are Me loans the issuers get from invectort) Just as your credit worthoness is evaluated when you apply for a loan, the creds werthiness

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Bonds are Me loans the issuers get from invectort) Just as your credit worthoness is evaluated when you apply for a loan, the creds werthiness of the boed also needs to be exaluated. Jo do thio, independent sgences have created a rating system. Fo belp investors evaluate bonds, private lating egences such as Moody's and saandard zo Por's assign grades to designate a bond's quatity Which of the foliswing statements regarding the rating system are correct? Check ay that apply: The term junk bend means that the interest poyments are net being met. Diterent rating wyttems are used for cerperate versus municapat bonds. The rating C wignies a lewer riak of def was than +6 reting. A bond 1 ated Ba by Hoodr's is comparable to bend rated Cg by standand a Poors. The average yelds on ahe bonds are generally lower th an the wverage nelds on bat bends. The folluming that thewe the distribian of toodrs ratings lec muniepel beods betseen 19 \%o and 200

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