The Lowest Rating a Bond Can Receive from Moody's and Still

question 62

Multiple Choice

The lowest rating a bond can receive from Moody's and still be classified as an investment-quality bond is:

• A) BB.
• B) BBB.
• C)B
• D) Ba.
• E) Baa.

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Definitions:

Equipment Purchases

Expenditures made by a company to acquire or upgrade physical assets such as machinery, vehicles, or office equipment.

IFRS

International Financial Reporting Standards are a set of accounting guidelines created by the International Accounting Standards Board that govern how transactions and other accounting events should be reported in financial statements.

Dividends Paid

Cash or stock distributed to shareholders out of a company's earnings.

Interest Received

The income earned from any form of investments like savings accounts, certificates of deposit, or bonds.