Bonds Vary Considerably in Terms of Risk

question 27

True/False

Bonds vary considerably in terms of risk. One tool used by bond investors to assess the risk of a bond is its so-called risk rating.

---

Definitions:

Battery

A device consisting of one or more electrochemical cells that convert stored chemical energy into electrical energy, used as a power source for electronic devices.

Charging

The process of adding electrical energy to a battery or capacitor, storing it in a form that can be released later as electrical power.

Amperes

A unit of electric current in the International System of Units (SI), representing the flow of one coulomb of charge per second.

Carrying Capacity

The maximum amount of electric current a conductor or device can carry before degradation occurs, specified by its rating.