Bond ratings primarily help potential investors measure the likelihood that the bond
Issuer will:

Question

Quizplus · Accepted Answer

Bond ratings are used to evaluate the creditworthiness of a bond issuer, and they primarily assess the ability of the issuer to pay the interest and principal on the bond. The higher the rating, the lower the default risk, and the more likely the issuer is to fulfill its obligations. Choice B is incorrect because the likelihood of a bond being called prior to maturity is not related to its credit rating. Choices C, D, and E are also unrelated to bond ratings.

Bond Ratings Primarily Help Potential Investors Measure the Likelihood That