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

Question

Quizplus · Accepted Answer

Bond ratings assess both the creditworthiness of the issuer and the quality of the underlying bonds, as well as the issuer's ability to make payments on the bonds in a timely manner. Bond covenants and indentures may provide additional information on the terms and conditions of the bond, but they do not assess the creditworthiness of the issuer or the underlying bonds.

__________________ Assess Both the Collateral and Underlying Bonds as Well