__________________ assess both the collateral and the ability of the issuer to make timely interest and principal payments.

Question

Quizplus · Accepted Answer

Rating agencies assess both the ability of the issuer to make timely interest and principal payments and the collateral before assigning a rating to a bond. Bond covenants refer to the terms and conditions of the bond issue, bond indentures refer to the legal document that outlines the terms of the bond, and bond trustees represent the interests of the bondholders.

__________________ Assess Both the Collateral and the Ability of the Issuer