A Bond's "Spread" Refers to the Difference Between It's Moody's

question 82

True/False

A bond's "spread" refers to the difference between it's Moody's rating and its Standard & Poors rating.

---

Definitions:

Collateralize

The act of using an asset as security for a loan, ensuring the lender can seize the asset if the borrower defaults.

UPA

Uniform Partnership Act, a standardized set of laws to regulate the formation and management of partnerships in the United States.

Mortgage

A transfer of an interest in property for the purpose of creating a security for a debt.

Partnership Property

Assets purchased or acquired for the purpose of the partnership business, jointly owned by all partners according to the partnership agreement.