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Which of the Following Are True Concerning Bond Ratings

question 38

Multiple Choice

Which of the following are true concerning bond ratings?
I. They have a greater impact on the price and yield of junk bonds than on investment grade bonds.
II. They provide investors with a convenient way to assess the relative risk of various bond issues.
III. They are provided by an independent government agency.
IV. They have a significant effect on a bond's price and yield.


Definitions:

Professional Association

An organization seeking to further a particular profession, the interests of individuals engaged in that profession, and the public interest.

Insurance Agent

A professional who sells, solicits, or negotiates insurance policies on behalf of an insurer.

Threefold Test

A method used in various legal contexts to evaluate criteria or conditions based on three distinct factors.

Negligent Misrepresentation

Providing false or misleading information carelessly, leading to someone else making a detriment based on that information.

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