Which One of the Following Statements Concerning Bond Ratings Is

question 70

Multiple Choice

Which one of the following statements concerning bond ratings is correct?

• A) Investment grade bonds are rated BB or higher by Standard & Poor's.
• B) Bond ratings assess both interest rate risk and default risk.
• C) Split-rated bonds are called crossover bonds.
• D) The highest rating issued by Moody's is AAA.
• E) A "fallen angel" is a term applied to all "junk" bonds.

---

Definitions:

Universal Product Code

A barcode symbology that is widely used in the United States and other countries for tracking trade items in stores.

Vendor-managed Inventory

A supply chain arrangement where the vendor is responsible for maintaining the inventory levels of their products at the buyer's premises, optimizing stock levels and reducing out-of-stocks.

RFID Tag

A technology that uses radio waves to automatically identify and track tags attached to objects, containing electronically stored information.

Fulfillment Center

A large warehouse facility used for receiving, processing, and fulfilling customer orders quickly and efficiently.