The work of bond rating agencies is important because

Question

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Bond rating agencies assess the creditworthiness of issuers and issue a rating based on their assessment. This rating affects the marketability of the bond and its interest rate. This is because investors see bonds with higher ratings as a safer investment, which leads to lower interest rates. Conversely, bonds with low ratings are seen as risky, which leads to higher interest rates. Therefore, the work of bond rating agencies affects the interest rate and marketability of bonds.

The Work of Bond Rating Agencies Is Important Because