Describe Four Important Factors Bond-Rating Agencies Consider When Assigning a Bond

question 26

Essay

Describe four important factors bond-rating agencies consider when assigning a bond rating.

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Definitions:

Income Subsidy

A government payment to individuals or families that augments their income, intended to help them afford essential goods and services.

In-Kind Transfers

Non-cash government assistance provided to individuals or groups, such as food stamps, housing, and healthcare services.

Negative Income Tax

A fiscal mechanism where people earning below a certain income threshold receive supplemental pay from the government instead of paying taxes.

Poverty Reduction

The process or strategies aimed at decreasing the number of people living in poverty and improving the living conditions of the poor.