Why Do Corporations Find High Bond Ratings Desirable

question 105

Multiple Choice

Why do corporations find high bond ratings desirable?

• A) Higher interest rates on the bonds mean higher corporate profits.
• B) Higher ratings improve a company's image with consumers.
• C) Higher ratings mean lowered corporate operating costs.
• D) Firms can sell more bonds when they are highly rated.
• E) Bonds with higher ratings are less likely to have to be repaid.