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You Are Trying to Evaluate Two Bond Issues

question 93

Essay

You are trying to evaluate two bond issues.One bond issue is rated "A" by Moody's; the other is rated "B." How important are the bond ratings issued by Moody's Investors Service?
Based on your answer,would you purchase the "A" bond or the "B" bond?

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Definitions:

Privately Sponsored

Funded or supported primarily by private individuals, companies, or organizations rather than by the government or public entities.

Government Sponsored

Refers to initiatives, programs, or enterprises financially supported or backed by government entities.

Income Groupings

Categorizations of individuals, households, or countries based on income levels, used for statistical and analytical purposes.

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