Which of the Following Statements Is True

question 77

Multiple Choice

Which of the following statements is true?

• A) Investment grade bonds are those rated single B and higher.
• B) Federal laws typically allow insurance companies and pension funds to purchase non-investment grade bonds.
• C) Because investors are risk averse, they require a premium to purchase a security that exposes them to default risk.
• D) All else equal, the higher a bond's rating the higher the coupon rate.

---

Definitions:

Direct Communication

A straightforward and explicit way of expressing oneself, without the use of any intermediaries or modifications to the message.

Abbreviation

A shortened form of a word or phrase, used to simplify communication.

Subject Line

The text that summarizes the main topic of an email, often determining whether the email is opened by the recipient.

EOM

An acronym for End of Message, often used in emails and messaging to indicate that there is no additional content to read beyond the subject line or in the body of the communication.