Which of the Following Factors Are Included in the Rating

question 1

Multiple Choice

Which of the following factors are included in the rating analysis of a corporate bond?
I. The issue's indenture provisions.
II. The liquidity position of the issuing company.
III. The issuing company's relative debt burden.
IV. The stability of the company's earnings.

• A) I, II, III and IV.
• B) I, II and III only.
• C) I and II only.
• D) II, III and IV only.

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Definitions:

Sediment

Particulate material that is transported and deposited by water, wind, or ice, often forming layers on the Earth's surface.

Continental Collision

The event where two continental tectonic plates come together, creating significant geological features like mountain ranges.

Glaciers

Large masses of ice that move slowly over land, formed by the accumulation and compression of snow.

Plucking

A glacial process where rocks and debris are picked up and moved by moving ice, contributing to the erosion of bedrock beneath glaciers.