T or F. The highly developed the bond rating, the more failure to pay risk associated beside the bond?




Answers:    False.

The higher the Bond rating the lower the evasion risk.

AAA bonds are written by the organizations beside the least amount of risk for non-attendance. Organizations that write BB bonds and lower have a superior chance for evasion.

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The higher the rating the smaller amount risk.

Independent agencies, such as Standard & Poor's (S&P) and Moody's Investors Service, assess the likelihood that bond issuers are feasible to default on their loans or interest payments.

Ratings systems differ from one agency to another but usually hold at least 10 category, ranging from a big of AAA (or Aaa) to a low of D. Bonds ranked BBB (or Baa) or greater are considered investment-grade bonds.




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