A Corporate Bond Which Receives a BBB Rating from Standard

question 5

Multiple Choice

A corporate bond which receives a BBB rating from Standard & 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:

Deontological Theory

An ethical framework that judges the morality of an action based on the action's adherence to rules or duties, rather than the consequences of the action.

Utilitarian Theory

A theory in ethics and philosophy that actions are right if they are useful or for the benefit of a majority.

Teleological Theory

Refers to an ethical theory that the morality of an action is determined by its outcome or end result.

Profit Maximization Theory

A theory suggesting that the primary goal of a company is to increase its profits to the highest possible level within a given time period, subject to legal and market constraints.