Which One of the Following Statements Concerning Bond Ratings Is

question 70

Multiple Choice

Which one of the following statements concerning bond ratings is correct?

• A) Investment grade bonds are rated BB or higher by Standard & Poor's.
• B) Bond ratings assess both interest rate risk and default risk.
• C) Split-rated bonds are called crossover bonds.
• D) The highest rating issued by Moody's is AAA.
• E) A "fallen angel" is a term applied to all "junk" bonds.

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Definitions:

Cash Disbursements

Cash disbursements are the payments a company makes in cash, including expenses, debt payments, and distributions to shareholders.

Variable Selling And Administrative Expense

Costs that vary with sales volume, such as commissions or shipping charges.

Master Budget

A comprehensive financial planning document that includes all of a company's budgets, combining sales, production, and financial aspects to overview performance.

Sales Forecast

An estimate of the amount of sales a company expects to achieve over a specific period, often used for strategic planning and resource allocation.