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Noninvestment-Grade Bonds Are Bonds That Receive a Standard and Poor's

question 11

Multiple Choice

Noninvestment-grade bonds are bonds that receive a Standard and Poor's (S&P) bond rating of ________ and lower.


Definitions:

Face Value

The nominal value or dollar value printed on a security or a financial instrument, such as a bond or a stock certificate.

Market Rate

The prevailing interest rate available in the marketplace for instruments of similar risk and maturity.

Contract Rate

The predetermined fee or rate agreed upon in a contract for services rendered or goods sold.

Bonds

Long-term debt securities issued by corporations or governments to raise capital, paying interest to holders.

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