Speculative-grade bonds are:
A)bonds that ratings agencies rate in the top four rating categories.
B)bonds that ratings agencies rate below 'BBB' (S&P)or below 'Baa' (Moody's).
C)bonds that ratings agencies rate above 'BBB' (S&P)or 'Baa' (Moody's).
D)bonds that legally require ratings by ratings agencies like S&P and Moody's.

Question

Quizplus · Accepted Answer

Speculative-grade bonds, also known as junk bonds, are rated below 'BBB' by S&P or below 'Baa' by Moody's, indicating higher risk.

Speculative-Grade Bonds Are