Rating Agencies Assign Their Ratings of a Firm's Bonds Based

question 94

Multiple Choice

Rating agencies assign their ratings of a firm's bonds based on the

• A) market value of the firm.
• B) value of the firm's capital assets.
• C) rate of interest paid by the bond.
• D) likelihood of default on the bond.
• E) total number of the firm's bonds in circulation.

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Definitions:

Exhale

The process of releasing air from the lungs through the mouth or nose.

Tetralogy of Fallot

A congenital heart defect that includes four abnormalities: a large ventricular septal defect, pulmonary stenosis, right ventricular hypertrophy, and an overriding aorta.

Systolic Murmur

A heart sound indicating turbulent blood flow that occurs during the heartbeat's systolic phase, often implying valvular heart disease or other circulatory issues.

Patent Ductus Arteriosus

A congenital heart defect where the ductus arteriosus fails to close after birth, allowing blood to flow between the aorta and the pulmonary artery.