When dealing with junk bonds, _____ have the highest degree of speculation, while_____ have the lowest.
A) C, B
B) BB, C
C) C, BB
D) CCC, C

Question

Quizplus · Accepted Answer

In the bond rating system, BB-rated bonds are considered the highest quality within the junk bond category, indicating a lower degree of speculation compared to other junk bonds. C-rated bonds, on the other hand, are closer to the bottom of the credit quality scale within the junk bond category, indicating a higher degree of speculation.

When Dealing with Junk Bonds, _____ Have the Highest Degree