Generally with Bond Ratings, the Higher the Rating, the ________

question 163

Multiple Choice

Generally with bond ratings, the higher the rating, the ________ the interest rate an investor will receive and the ________ the risk that the issuer of the bond will default.

• A)higher; higher
• B)higher; lower
• C)lower; higher
• D)lower; lower

---

Definitions:

Hindu

Relating to Hinduism, a major world religion originating on the Indian subcontinent and comprising various philosophies, beliefs, and rituals.

Polytheistic Religion

A belief system that recognizes the existence of many gods or deities, each with distinct attributes and areas of influence.

Moral Obligation

A duty which one owes, and which he ought to perform, but which he is not legally bound to fulfill.

Interest

The charge for the privilege of borrowing money, typically expressed as an annual percentage rate.