Bonds receiving one of the top four ratings are considered
A) junk.
B) speculative.
C) AAA.
D) investment grade.

Question

Quizplus · Accepted Answer

Bonds receiving one of the top four ratings are considered "investment grade," meaning they are considered to have a low risk of default and are generally suitable for conservative investors. Junk bonds are below investment grade and are considered to have a higher risk of default. Speculative bonds generally refer to high-risk investments with potentially high returns, but also potentially high losses. AAA is a specific top rating for bonds, but not all top ratings are AAA.

Bonds Receiving One of the Top Four Ratings Are Considered