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Which one of the following statements is true concerning bond ratings? Select one: a. A bond rated BBB or lower is considered a junk bond

Which one of the following statements is true concerning bond ratings? Select one: a. A bond rated BBB or lower is considered a junk bond b. Bond ratings are based only on the risk of default c. Bond ratings are based on both the risk of default and the interest rate risk d. All else equal, a bond rated BB should pay a higher return than a bond rated B

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