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Most Municipal and Corporate Bonds Are Rated by an Independent

Question 353

Multiple Choice

Most municipal and corporate bonds are rated by an independent rating firm such as Standard & Poor's (S&P) or Moody's. These ratings provide investors with information regarding the risk of default on the bond issue. The higher rated bonds are considered _________.


A) Investment grade bonds
B) Speculative bonds
C) Junk bonds
D) Blue chip bonds

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