Which of the Following Statements Is not True Regarding Bond

question 19

Multiple Choice

Which of the following statements is not true regarding bond ratings?

• A) The ratings assigned are meant to indicate the probability of default for the bond issuer.
• B) The bonds assigned one of the top four rating classes are considered investment grade bonds.
• C) Once a rating is assigned to an issue it cannot be changed for the first two years after which it is reviewed on a regular basis.
• D) Bonds rated BB and below are referred to as high yield or "junk" bonds.
• E) The rating agencies modify the ratings with + and - signs or numbers after the letters.

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Definitions:

Superficial Vein

A vein that is situated close to the surface of the body, generally visible under the skin and not associated with deeper tissues or arteries.

Necrotic Tissue

Dead tissue that results from the lack of blood supply, often associated with infection, injury, or diseases.

Ischemia

A condition resulting from inadequate blood supply to an organ or part of the body, often leading to tissue damage.

Azygos Vein

A major vein located in the thoracic cavity that drains blood from the thorax to the superior vena cava.