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Bonds with a Rating of Ba or Below by Moody's

question 27

True/False

Bonds with a rating of Ba or below by Moody's are referred to as speculative grade,high-yield,or junk bonds.


Definitions:

Annual Interest Rate

The percentage of interest that is charged or earned on an investment or loan over the course of a year.

Revolving Line

A credit arrangement that allows a borrower to use or withdraw funds up to a designated limit, repay them, and borrow again.

Simple Interest

A method of calculating interest where the interest charge is based only on the original principal, not on the interest which has been added over time.

Annual Rate

The interest rate for a period of one year.

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