Some Companies Issue Bonds Without a Credit Rating

question 72

Essay

Some companies issue bonds without a credit rating. Given that many institutions have prudent investment guidelines and cannot invest in unrated bonds, why would a company issue unrated bonds?

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Definitions:

GDP

Gross Domestic Product, the total value of all goods and services produced within a country in a specific time period.

Federal Government

The national government of a federation, which holds the authority to govern issues that affect the entire country.

Tax Receipts

The income received by the government from taxes.

Federal Transfer Payments

Government payments transferred to individuals or states, often for assistance, without requiring direct services in return.