A Bond's Rating Can Depend on All of the Following

question 52

Multiple Choice

A bond's rating can depend on all of the following except

• A) the corporation's debt-equity ratio.
• B) the corporation's size.
• C) the ability of the firm to make interest payments.
• D) the coupon rate on the bond.

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Definitions:

Personal Profits

Income or gains received by an individual from various sources, including employment, investments, or personal business ventures.

Capital Contribution

Funds or assets provided by partners or shareholders to increase the capital of a company or partnership.

Share Losses

The financial reductions in value or earnings experienced by shareholders as a result of a decrease in the price or profitability of the shares.

Partnership Agreement

A contract between partners in a partnership, detailing the terms of the relationship, distribution of profits, and the management of the partnership.