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Why Do Corporations Find High Bond Ratings Desirable

Question 102

Multiple Choice

Why do corporations find high bond ratings desirable?


A) Higher interest rates on the bonds mean higher corporate profits.
B) Higher ratings improve a company's image with consumers.
C) Higher ratings mean lowered corporate operating costs.
D) Firms can sell more bonds when they are highly rated.
E) Bonds with higher ratings are less likely to have to be repaid.

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