Percent Defaults Percent Upgraded or Downgraded in 2013 Down S&P /DBRS Moody's AAA Aaa AA 1-Year 0.00% 5-year 0.00% 0.00% 9.50% 0.00% 2.50% 3.70% A A 0.00% 0.00% Up NA 0.00% 1.20% 3.90% 5.10% 5.80% 10.10% Yield 1.60% 2.20% 2.40% 2.70% 4.70% 5.90% 13.50% BBB Baa 0.00% 0.00% 3.60% 19.60% 68.50% 2.50% 4.70% BB Ba 0.10% 1.60% B B 6.00% C 25.70% 23.40% The following table presents Bond Ratings, Default Risks, and Yields. (State 5 answers with correct question number responses. Incomplete / illegible answers will not be marked.) 1. S&P, DBRS, and Moody's are examples of 2. An investment grade bond has a rating of 3. A high-yield bond has a rating of 4. Another name for a high-yield bond is 5. The difference between a bond's yield and the yield on some other security of the same maturity is known as