A Corporate Bond Which Receives a BBB Rating from Standard

question 27

Multiple Choice

A corporate bond which receives a BBB rating from Standard and Poor's is considered:

• A)a junk bond.
• B)an investment-grade bond.
• C)a defaulted bond.
• D)a high-yield bond.

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Definitions:

Required Supplementary Information

Information that supplements the basic financial statements in an audit, providing additional insights or disclosures that are not part of the primary financial statements.

MD&A

Management's Discussion and Analysis, a section of a company's financial report where management discusses the financial and operational aspects of the company.

Financial Activities

Transactions involving changes in equity, debt, and investments that affect a company's cash flow.

Objective Analysis

A method of evaluation or research that is based on fact and is not influenced by personal feelings or opinions.