1. The best rating a bond can receive is AAA. Obtaining this rating is very important to the issuing company because it sends a message to the public that they can be counted on to make the promised payments. However, there is one other very significant advantage to obtaining the AAA rating. What is that advantage?

1. The issuing company can sell bonds with a longer redemption period
2. The issuing company does not have to pay back the redemption amount
3. The issuing company does not have to pay dividends
4. The issuing company can save money on interest costs because the AAA rating can justify a lower coupon rate.