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possible options 1) 0.95/0.02/99.05/69.08/0.15/14.66/3.15% Ch 12: Assignment - Investing in Stocks and Bonds 9. Bond ratings . What Are Bond Ratings and Why Are They
possible options 1) 0.95/0.02/99.05/69.08/0.15/14.66/3.15% Ch 12: Assignment - Investing in Stocks and Bonds 9. Bond ratings . What Are Bond Ratings and Why Are They Assigned? Bonds are like loans the issuers get from investors. Just as your credit worthiness is evaluated when you apply for a loan, the credit worthiness of the bond issuance also needs to be evaluated. To do this, independent agencies have created a rating system. It is important to understand what this system means and how it works. To help investors evaluate bonds, private rating agencies such as Moody's and Standard & Poor's assign grades the following statements regarding the rating system are correct? Check all that apply. The term junk bond means that the interest payments are not being met The rating C signifies a lower risk of default than a B rating. Different rating systems are used for corporate versus municipal bonds. en la banda sono certamente para hombres y de los tema The average yields on Aaa bonds are generally lower than the average yields on Baa bonds A bond rated Ba by Moody's is comparable to a bond rated BB by Standard & Poor's. The following chart shows the distribution of Moody's ratings for municipal bonds between 1970 and 2000, The rating C signifies a lower risk of default than a B rating. Different rating systems are used for corporate versus municipal bonds. The average yields on Aaa bonds are generally lower than the average yields on Baa bonds. A bond rated Ba by Moody's is comparable to a bond rated B8 by Standard & Poor's. The following chart shows the distribution of Moody's ratings for municipal bonds between 1970 and 2000. PERCENTAGE OF BONDS IN THIS CATEGORY AD You can see that of municipal bonds were considered investment grade bonds during this period
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