The Single-A and triple-B bonds are strong enough to be called _______________, and they are the lowest-rated bonds that many banks and other institutional investors are permitted by law to hold.

Question

Quizplus · Accepted Answer

Investment grade bonds are generally considered to be the safest and lowest-risk category of bonds. Single-A and Triple-B bonds fall within this category and are considered relatively safe investments, which is why many banks and institutional investors are legally allowed to hold them. The other options - public service bonds, floating rate bonds, and coupon bonds - do not accurately describe the characteristics or rating of these bonds.

The Single-A and Triple-B Bonds Are Strong Enough to Be