A Bond Rated AAA Is Perceived to Have GREATER Default

question 67

True/False

A bond rated AAA is perceived to have GREATER default risk than a bond rated BBB.

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Definitions:

Existing Promise

A commitment or agreement already in place, often referring to contractual obligations.

Existing Promisor

A party in a contractual agreement who has previously committed to perform a specific duty or obligation.

Contractual Promises

Commitments made within a contract that are binding and enforceable by law, requiring parties to perform or refrain from certain actions.

Absolute Promises

Unconditional commitments made by one party to another, requiring full performance without contingencies or reliance on future events.