The bonds that are considered investment rating bonds are given the rating of _________?
Correct answer: A. triple B rating bonds
- A. triple B rating bonds
- B. double B
- C. triple A
- D. double A
Explanation
BBB is the lowest investment-grade rating in the major rating systems, while BB is below investment grade. AAA and AA are stronger ratings but are not the defining cutoff asked for here.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
IN negotiated sale, the services provided by the investment banks are __________?
The auction of the TIPS security is classified as _________?
The source of funds for the repayment of municipal bonds is considered as __________?
The difference between face value of the bond and the call price of the bond is considered as _________?
If the trading of municipal bonds is infrequent, then secondary market is considered as __________?
The bonds having longer maturity on original loans than promised payments are classified as _________?