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How Would a Low Rating by Standard & Poor's or Moody's

Question 87

Multiple Choice

How would a low rating by Standard & Poor's or Moody's affect a corporate bond issue?


A) The bonds will not sell.
B) It is forbidden for the bonds to be issued within the United States.
C) Interest rates on such bonds must be higher than higher-rated bonds.
D) Actually such ratings have no effect on the bonds.

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