The price of a bond issue is determined by the market or effective rate of interest. A bond issue with a 10% stated interest rate will sell for less than face value if the market or effective rate of interest is 12%. The creditworthiness of the issuing entity is one of the factors that influence the market rate for a specific bond issue. Investors rely heavily on bond ratings provided by Standard & Poor's Corporation and by Moody's Investors Service, Inc.
Required:
Complete the table below by entering the appropriate rating for each level of risk under the S&P and Moody's rating systems.

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The Answer of The price of a bond issue is determined by the market or effective rate of interest. A bond issue with a 10% stated interest rate will sell for less than face value if the market or effective rate of interest is 12%. The creditworthiness of the issuing entity is one of the factors that influence the market rate for a specific bond issue. Investors rely heavily on bond ratings provided by Standard & Poor's Corporation and by Moody's Investors Service, Inc.
Required:
Complete the table below by entering the appropriate rating for each level of risk under the S&P and Moody's rating systems.

The Price of a Bond Issue Is Determined by the Market