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IIA-CFSA · Question #186

Most municipal and corporate bonds are rated by an independent rating firm such as Standard & Poor's (S&P) or Moody's. These ratings provide investors with information regarding the risk of default…

The correct answer is A. Investment grade bonds. See the full explanation below for the reasoning.

Question

Most municipal and corporate bonds are rated by an independent rating firm such as Standard & Poor’s (S&P) or Moody’s. These ratings provide investors with information regarding the risk of default on the bond issue. The higher rated bonds are considered _________.

Options

  • AInvestment grade bonds
  • BSpeculative bonds
  • CJunk bonds
  • DBlue chip bonds

How the community answered

(22 responses)
  • A
    68% (15)
  • B
    5% (1)
  • C
    18% (4)
  • D
    9% (2)

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