Answered

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Bond ratings classify bonds based on:

A. liquidity, market, and default risk.
B. liquidity, interest rate, and default risk.
C. default risk only.
D. interest rate, inflation rate, and default risk.
E. default and liquidity risks.

Sagot :

GinnyAnsweridn

Final answer:

Bond ratings classify bonds based on default risk.


Explanation:

Bond ratings classify bonds based on default risk. These ratings range from AAA to DDD for Standard and Poor's and from AAA to C for Moody's. Bonds with lower ratings are considered speculative and often referred to as high-yield or junk bonds.


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