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:

Subject-Matter Jurisdiction

The authority of a court to hear cases of a particular type or cases relating to a specific subject matter.

Specific Personal Jurisdiction

The legal authority for a court in a particular location to hear a case because the events leading to the dispute occurred in that location or the defendant has sufficient contacts with the area.

Stream of Commerce

The concept that goods are part of a continuous journey from production to final consumer, impacting jurisdiction in legal contexts.

Specific Personal Jurisdiction

The authority for a court to hear a case because the legal issue arose from the defendant's activities within the court's geographical area.